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Williamstown Cannabis Cultivation Business PlanDavis Collison and Rosa Kirk-Davidoff
We are on the stolen land of the Stockbridge-Munsee Band of the Mohican.
“The legal marijuana industry has the potential to save local farms and repair a broken food system.”- Suehiko Ono, EOS Farms
Introduction
● Who we are● Environmental Planning
○ Senior Seminar for Environmental Studies Majors
● This project - Williamstown Cannabis Cultivation
● Questions: Best scale to start? Opportunities for a craft market?
Averill Cook Davis and Rosa
Jake Zieminski
Our Clients
● Averill H Cook○ Born and raised in Williamstown.○ BS degree from University of Vermont○ Owned and operated a pellet manufacturing business for
12 years○ Traveled throughout numerous countries consulting in
wood energy○ Maintained an operated Wendling Farm in Williamstown
where he grew up○ Superior land stewardship has been paramount
throughout his career
Averill Cook Jake Zieminski
Our Clients ● Jake Zieminski
○ Born and raised in Cheshire Ma on family dairy farm. Lived in Boston for 20 years and recently moved family back in 2018 to launch cannabis start-up.
○ Cannabis Entrepreneur■ Current owner of CAVU Hemp, Cheshire Ma- MDAR licensed 2019■ 2021- CCC – Marijuana Cultivation Applicant■ Cannabis Activist, Educator and Advisor since 2014
○ Prior to transitioning into Cannabis industry in 2018, Mr. Zieminski was a management consultant focused in healthcare. Mr. Zieminski has spent the primary part of his career in client based performance improvement roles at PricewaterhouseCoopers(PwC), FTI Consulting and a Boston based addiction clinic start-up.
○ Education:■ Providence College■ BS Management and Finance■ Liberal Arts ConcentrationAverill Cook Jake Zieminski
Methodology
● Client meetings● Site visits
○ Wendling Farm● Soil tests● Interviews ● Online Research
○ Case studies ● CCC regulatory research
Interviews● Cultivators
○ Ted Dobson■ Equinox Farm, Theory Wellness
○ John Moore ■ Roaring Glen Farms
● Retail○ Donna Norman
■ Calyx Berkshire Dispensary ● Other Experts
○ Sam Milton■ Climate Resources Group
○ Marion Mcnabb ■ President of Cannabis Center of Excellence, INC
○ Tony Kieffer■ Arch Solar Zoom Interview with Dr. Marion Mcnabb
Ted Dobson https://www.berkshireeagle.com/archives/inside-equinox-farms-first-cannabis-harvest/article_80261c50-e6c0-5a4b-87ec-828abffaf0bd.html
Intro to Cannabis Cultivation
https://www.visualcapitalist.com/anatomy-cannabis-plant/
https://www.instagram.com/theorywellness/
Types of Licenses
● Tier 1 (1,000-5,000 ft2)-Tier 11 (90,000-100,000 ft2)○ Indoor Cultivation○ Outdoor Cultivation
● Greenhouses ● Microbusiness: Tier 1 cultivation and/or product manufacturer● Craft Marijuana Cooperative
Cannabis Control Commission
Business Plan
Executive Summary
Mission:
Provide a sustainable and high-quality but
affordable product through the outdoor
cultivation of cannabis.
Year 1: Tier 6 (50,000 sq ft) outdoor grow, Tier 1(5,000 sq ft) indoor
greenhouse
Year 2: Continue with a Tier 6, reinvest in facilities to enable
expansion
Year 3: Expand to Tier 11 (100,000 sq ft) outdoor grow, prepare
application for product manufacturing and retail licenses
Year 4: Tier 11 grow, continue application process and build capacity
for manufacturing and retail
Year 5: Tier 11 grow, begin manufacturing and retail operations
Startup Summary
Fence & security $200,000
Greenhouse $600,000
Labor $250,000
Plant-related expenses $150,000
Legal & licensing $200,000
Equipment $400,000
(Land) $500,000
Sales & marketing $100,000
Total $2,550,000
Financial Summary
Market Overview: US Cannabis Market
● Increased legalization by states
● Possibility of federal legalization
● 280e Schedule 1 Drug● National average price:
$1,846 as of Nov. 27● Regional price variation
https://www.nbcnews.com/news/us-news/map-see-if-marijuana-legal-your-state-n938426
Target Market: Massachusetts
● Average wholesale price for average-quality indoor marijuana: $3,800/ lb as of March 2020
● More than 2x national average● Demand > supply
○ 90 licensed retailers○ 40 licensed cultivators○ Only 4 licensed outdoor cultivators
● Complicated regulatory process● 10.75% excise tax, 6.25% sales tax
SWOT Analysis
Massachusetts Regulatory Framework
Williamstown Regulatory Process
Marketing Strategy - Craft Cannabis
● Opportunities unique to cannabis○ Genetic diversity
● Terroir--outdoor grown as a specialty product● Example: Craft beer
○ There are strategies that are already in place● Consumer education required
○ Culture of local food & drink in the Berkshires
https://www.instagram.com/theorywellness/
Marketing Strategy - Certifications
● Sun & Earth ○ Earth Care & Cultivation, Human Empowerment and Community
Engagement● Sun Grown
○ No supplemental lighting during flowering, otherwise only to extend natural daylight
● Cannabis Conservancy ○ 45 Standards of Sustainability
Cultivation Plan
● Outdoor Tier 6 (50,000 sq ft) grow w/ a Tier 1 greenhouse
● Greenhouse is closed & includes HVAC, supplemental lighting
● Closed greenhouse enables keeping mothers alive through the winter
● Alternative strategy=start from seeds each year
● Use companion crops to support pollinators, limit erosion, and control smell
Cultivation Risks
● Outdoor cultivation offers more risks than indoor
○ Mildew○ Pests○ Bad weather
● Estimated 30% crop loss per year
Sustainability
● Indoor cultivation is extremely energy intensive
● MA has energy standards that encourage LED lighting
● Sustainable future for cannabis is outdoor grown
● Least energy use= save seeds & start from seeds each year
Energy
https://www.pharmout.net/outdoor-cannabis-crop-risks-outdoor/
Cultivation Timeline & Forecast
Tier 6: 2,000 lbs
Tier 11: 4,000 lbs
https://www.leafly.com/news/growing/outdoor-cannabis-growing-calendar
Organizational Structure
Co-Owner
Head Cultivator
Full-time Assistant Cultivators (4)
Planting and Harvest Assistants (6)
Co-Owner PartnerExecutive
Management Management
Staff Management
Financial Plan
Estimates:● Crop loss= 30%● Local taxes= 3%● State taxes=10.75%● Federal taxes=based on income
Tier 6 Tier 11
Price/ lb $2,500 $2,500
# of lbs 2,000 4,000
Gross Revenue
$5,000,000 $10,000,000
Startup Costs Breakdown
Greenhouse— ~$650,00● Capital cost = $131.50 /ft2
● Energy cost = 27.64 per ft2/yr
Labor— ~$250,000 ● salaries & training for both full time and
temporary labor● Managers need background checks
Fence & Security— ~$200,000 ● fence, security cameras, & storage of data
required by MA regulations
Startup Costs Breakdown (CONT.)
Equipment— ~$400,000 ● could include tractor,
harvesting equipment, drying & curing equipment
Licensing— $16,175
● Tier 6 Outdoor = Application Fee $1,700 + Annual License Fee $13,750
● Tier 1 Indoor = Application Fee $100 + Annual License Fee $625
Legal Estimate— ~$100,000
Plant Costs— ~$150,000● Includes seeds, pots, nutrients,
pesticides, row cover, tags, testing
Sales/Marketing— ~$100,000
Land— ~$500,000
Recommendations & Final Takeaways
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Final Takeaways ● As currently set up, regulations in Massachusetts are very expensive for
small farmers and need to be changed in order to uplift these farmers● Strategies we’ve seen to address the high start-up costs:
○ Ted Dobson/ Theory○ John Moore/ Roaring Glen Farms○ Jake and Averill’s partnership
● Need strategic partnerships
Alternate Strategies
● Saving Seeds (Instead of mothers/cloning)○ Lowest cost long and short term ○ Lowest carbon footprint
■ Only need a hoop house○ Allows for specialized genetics○ Decreased harvest
● Craft Marijuana Cooperative ○ Allows for resources to be pooled
Policy Recommendations
● National: Remove marijuana from Schedule 1 list● State: Make licensing process easier for farmers
○ Faster process, make sure approval lines up with planting season● Local: No limits on farm size at the local level
○ Microbusiness size is not profitable○ Don’t further limit the options for farmers
● Local municipalities need to be strategic partners to farmers, not an additional cost or another barrier
Thank you!Professor Gardner
Our clients: Jake Zieminski, Averill Cook
Interviewees: Ted Dobson, Sam Milton, Donna Norman, John Moore, Marion Mcnabb, Tony Kieffer
Steve Fogel
Agricultural Commission
(And Lucas the dog)
Appendix
Energy Use – Indoor Marijuana Cultivation
Indoor Energy Cost Breakdown
https://www.esource.com/tas-f-18/harvesting-energy-savings-indoor-agriculture-facilities
Cannabis Cultivation Innovation Driving Cost Reductions
Production Cost Trends-National Data *Not adjusted for Ma
Financial Estimates Breakdown (Excel Sheet)
Our estimates for price
National Average Price
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https://www.bostonglobe.com/2020/09/16/marijuana/sky-high-massachusetts-marijuana-is-among-most-expensive-nation/.
Aguirre de Carcer, Giadha. The Cannabis Energy Report. NewFrontier Data, 2018.
Application Checklist. Cannabis Control Commission.
Chen, Angela. “Why the Future of Marijuana Farming Could Be Craft Weed.” The Verge, 21 Nov. 2018,
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Cowgill, Terry. “‘Grown in the Berkshires’: First Outdoor Cannabis Growing Facilities in the State Planned for Sheffield.” The Berkshire Edge, 8
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Koh, Adam. “COVID-19 Strikes Wholesale Cannabis Market.” Cannabis Business Times,
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Bibliography (2)Lastreto, Nikki. “Why Choose Sungrown Cannabis, and What Makes Outdoor Cultivation Superior?” MERRY JANE,
https://merryjane.com/culture/why-choose-sungrown-cannabis-and-what-makes-outdoor-cultivation-superior. Accessed 2 Nov. 2020.
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