This post was originally published on this site.
A major decision when starting a cannabis cultivation operation in New Jersey is what type of facility to build.
To start, you may want to eliminate outdoor cultivation as municipalities routinely shun this option because of odor and security concerns. While the New Jersey Cannabis Regulatory Commission, the government agency the oversees all things cannabis in the state, has said it supports outdoor cultivation, not a single outdoor facility has opened since the market opened in 2022.
Veda Farms in Blairstown will buck this trend and open soon. It was awarded a license to grow up to 3.4 acres of cannabis on its 254-acre farm in northern New Jersey.
“Growing outdoors in full sun and living soil allows them to embrace the nature of the plant and help bring a diverse offering of flower products to the New Jersey market,” said Spencer Belz, owner of Last Mile Consulting who works with Veda Farms.
Although Veda Farms will be growing cannabis outdoors, they built an indoor processing facility. Describing this process, Belz advised, “Be prepared for delays, speed bumps, and additional expenses. More than anything, expect things to never go as planned. The quicker you can adapt and pivot, the easier it will be to continue moving forward.”
In New Jersey, most cannabis cultivators use one of the following processes:
- Indoor cultivation using hydroponics or live soil
- Greenhouse cultivation — with severe limitations — using hydroponics or live soil
(For simplicity sake this article will not cover aquaponics or aeroponics which are more uncommon growth methods.)
Expert advice
Noted cannabis architect Sam Andras, the EVP of Business Development at urban-gro, offers the following general tips about indoor construction:
- Start with — and stick to — your business plan, your roadmap of what you want to accomplish
- Use a Good-Better-Best matrix to decide how to spend your construction dollars
- The price points of equipment correlate to superior product
- Design for flexibility
- Don’t change your mind during the design/construction process- it will increase costs and add to project completion delays
- Think GMP (Good Manufacturing Practices) when constructing a facility; this will enable you to participate in federally legal and export opportunities in the future
For the build out, consider elements such as outer shell construction (how will the walls, roof and floors be constructed), the type of lighting to use, benching, and most importantly which environmental controls and HVAC to install (with a backup plan).
If you invest in a cheaper build-out and equipment, it will cost you more in day-to-day operations and maintenance, but you won’t have such a large initial investment.
Conversely, upfront investment saves you operating dollars and better positions you to upgrade and expand in the future. This is where an experienced consultant can clearly point out the pros and cons of your building choices.
Greenhouse growing
If you are considering growing cannabis in a greenhouse, buyer beware.
New Jersey does not classify a cannabis cultivation operation in a greenhouse as a greenhouse. It is because of the use of extensive lighting and heat created by the lighting. In other words, the issue is the use of HVAC systems without an energy complaint envelope design.
The one exception is if a cultivator grows in a greenhouse strictly using the sun and most likely grows one crop per year. (For the nitty gritty details see this government doc, Pages 5 and 6 re cannabis greenhouses). The bottom line is that year-round cultivation cannot take place in a New Jersey greenhouse.
Cost of growing
Using the Good-Better-Best matrix, for a 25,000-square-foot cultivation (and processing) facility built from the ground up —using plans from a pre-engineered building that is energy code compliant (with an insulated roof)— expect to pay between $320 per square foot (good) to $380 (better) to $450 (best) per square foot.
Finally, it is important to find a Head Grower who has a strong cultivation record in the type of facility you are building.
They are a key part of your operation. They should also know the rules and regulations in your state, be a broad thinker, pay attention to detail and work well with others.
With forethought and the help of a consultant you can make the right decision about the type of cultivation facility you would be proud to own.
Rob Mejia is a teaching specialist at Stockton University where he teaches the cannabis courses. He is also the author of “The Essential Cannabis Book” and “The Essential Cannabis Journal.” His cannabis education company is called Our Community Harvest.
Prof. Mejia’s Weed Corner is a regular feature in NJ Cannabis Insider. NJCI is a weekly subscriber-based online trade newsletter and events group produced by NJ Advance Media, which also publishes NJ.com, The Star-Ledger and other affiliated papers.