How Much Does it Cost to Grow Cannabis Outdoor?

Posted on 13 February, 2023 by Micheal Alexander

There are three primary methods of cultivation – outdoor, greenhouse and indoor – which have different production profiles. Outdoor cultivators produce one harvest per year in the fall, whereas indoor cultivators produce year-round and can generate 4, 6 or 12 harvests per year. The average deal size for indoor growers reflects the conventional experience of reduced yields in the late spring and summer, as cooling and humidity control costs increase and growers shutter portions of their operations until conditions for 100% capacity utilization return, generally in September. Starting a cannabis business

Greenhouse cannabis cultivation combines elements of both – exploiting natural light, while leveraging infrastructure and technology – to produce between 1 and 4 harvests per year, though sophisticated, well-equipped greenhouses can run year-round on schedules analogous to indoor production.  The result of this mix of cultivation methods is that growers approach the market differently at different times of the year. In June and July, large quantities of greenhouse grown flower from the first light deprived harvests are coming to market, potentially creating an oversupply situation. Cannabis business pro forma

Since outdoor cultivators produce one large harvest in the fall, which drives prices down, they tend to release product into the market in a controlled manner – selling enough in the fall to generate cash flow to cover expenses, but holding back inventory to release later in the year as prices rise.  Thus, outdoor cultivators – in general – are price setters in the fall and price takers in late spring and early summer.