This business plan proposes establishing an outdoor cannabis cultivation operation on a farm in Williamstown, MA. The plan involves starting with a tier 6 outdoor grow and tier 1 indoor greenhouse in year 1, expanding to a tier 11 outdoor grow by year 3 while pursuing manufacturing and retail licenses. The clients are experienced in agriculture and cannabis and will partner in owning and operating the business. The plan provides details on the local cannabis market, cultivation methods, financial projections, and recommendations for ensuring regulatory and economic viability. It concludes that partnerships and policy changes are needed to support small farmers in the Massachusetts cannabis industry.
2. We are on the stolen land of
the Stockbridge-Munsee
Band of the Mohican.
3. “The legal marijuana industry has the potential
to save local farms and repair a broken food
system.”- Suehiko Ono, EOS Farms
4. 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
5. 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
6. 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 Concentration
Averill Cook Jake Zieminski
7. Methodology
● Client meetings
● Site visits
○ Wendling Farm
● Soil tests
● Interviews
● Online Research
○ Case studies
● CCC regulatory research
8. 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-equino
x-farms-first-cannabis-harvest/article_80261c50-e6c0-
5a4b-87ec-828abffaf0bd.html
9. Intro to Cannabis Cultivation
https://www.visualcapitalist.com/anatomy-cannabis-plant/
https://www.instagram.com/theorywellness/
12. 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
15. 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-marijua
na-legal-your-state-n938426
16. 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
20. 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/
21. 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
22. 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
23.
24. Cultivation Risks
● Outdoor cultivation offers more
risks than indoor
○ Mildew
○ Pests
○ Bad weather
● Estimated 30% crop loss per year
25. 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/
28. 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
29. 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
34. 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
35. 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
36. 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
37. 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)
46. Bibliography (1)
Adams, Dan. “Sky High: Mass. Marijuana Is among the Most Expensive in the Nation - The Boston Globe.” BostonGlobe.Com, 16 Sept. 2020,
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,
https://www.theverge.com/2018/11/21/18106349/craft-weed-ryan-stoa-marijuana-agriculture-farming-cannabis-interview.
Cowgill, Terry. “‘Grown in the Berkshires’: First Outdoor Cannabis Growing Facilities in the State Planned for Sheffield.” The Berkshire Edge, 8
Apr. 2019, https://theberkshireedge.com/grown-in-the-berkshires-first-outdoor-cannabis-grow-facilities-in-the-state-planned-for-sheffield/.
DSouza, Deborah. “The Future of the Marijuana Industry in America.” Investopedia,
https://www.investopedia.com/articles/investing/111015/future-marijuana-industry-america.asp. Accessed 15 Nov. 2020.
Guidance for Farmers. Cannabis Control Commission, 16 Jan. 2020.
Koh, Adam. “COVID-19 Strikes Wholesale Cannabis Market.” Cannabis Business Times,
https://www.cannabisbusinesstimes.com/article/covid-19-strikes-wholesale-cannabis-market-flower-sales-prices/. Accessed 15 Nov. 2020.
47. 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.
“Licensing.” Cannabis Control Commission, https://mass-cannabis-control.com/licensing/. Accessed 3 Nov. 2020.
Local Roots Cannabis Crafted for Recreational Use in MA. /our-local-roots. Accessed 2 Nov. 2020.
Nova Farms | MA Outdoor Cannabis Farm. https://novafarms.com/farm/. Accessed 2 Nov. 2020.
“Outdoor Sustainability.” Theory Wellness, http://www.theorywellness.org/ma/sustainability/outdoor-sustainability/. Accessed 3 Nov. 2020.
“---.” Theory Wellness, http://www.theorywellness.org/ma/sustainability/outdoor-sustainability/. Accessed 2 Nov. 2020.
arket-flower-sales-prices/. Accessed 15 Nov. 2020.
Schaneman, Bart. “Prices up for Wholesale Flower in Both Newer and Mature Medical Cannabis Programs but Leveling Off.” Marijuana Business
Daily, 23 Mar. 2020,
https://mjbizdaily.com/prices-up-for-wholesale-flower-in-both-newer-and-mature-medical-cannabis-programs-but-leveling-off/.
Schoenberg, Shira. “Massachusetts Farmers Who Want to Grow Hemp Are Stymied by State Law.” Masslive, 13 Mar. 2019,
https://www.masslive.com/news/2019/03/hemp-is-a-new-opportunity-for-massachusetts-farmers-but-current-state-law-is-locking-them-out.
html.
48. Bibliography (3)
Shapiro, Katie. “A Certified Organic Labeling Program Is Coming To Cannabis In 2020.” Forbes,
https://www.forbes.com/sites/katieshapiro/2020/02/03/a-certified-organic-labeling-program-is-coming-to-cannabis-in-2020/. Accessed 3
Nov. 2020.
Squibb, Susan, and The Cannabist Staff. “Desperately Seeking Outdoor-Grown, Organic Marijuana in Colorado.” The Cannabist, 5 Jan. 2016,
https://www.thecannabist.co/2016/01/04/organic-marijuana-outdoor-pesticides/38301/.
Ted Dobson. Zoom Marijuana Cultivation Interview. 30 Oct. 2020.
“Theory Wellness | Medical And Recreational Cannabis | MA.” Theory Wellness, http://theorywellness.org/ma/. Accessed 2 Nov. 2020.