Growing Cannabis Outdoor Pros and Cons

Outdoor cultivators can produce 1 harvest in summer and 1 large harvest in 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.

The pros of outdoor growing include:

  • Plants grown outdoors in natural sunlight will reach their full genetic potential and will have a full and natural terpene profile.
  • Outdoor cultivation is sustainable and environmentally friendly.
  • Much less energy is required (no lighting, no cooling/heating) and nutrients can be regenerated and recycled.
  • This method requires fewer pesticides and insecticides, making it more reliable.
  • Much less capital investments are required (no building, no climate control system and other equipment).
  • More problems, but also “natural helpers” against mites such as ants and other insects.

The cons of outdoor growing include:

  • The growing location is regulated by the government and it is recommended that it be close to a water source.
  • Plants grown outdoors are always exposed to the elements, including the environment, weather, pests, and animals.
  • Outdoor growers must consider climate and seasons and ensure that work is completed quickly and efficiently.

Under ideal outdoor conditions, you can get half a pound to a pound of dried cannabis from each plant. It is important to have at least seven square feet per plant. Plants also need enough water and nutrients to keep them free of diseases and pests. Germinating plants early in the season allows them to grow much larger. It may be to your advantage to germinate the seeds indoors so you have complete control over temperature and humidity.

Growing Cannabis Outdoor Costs and Profits

The average start-up costs for outdoor cannabis growers are estimated to be around $10-$15 per square foot or about $435,000-$650,000 per acre. For our example, we are considering a growing area of 65,340 sq. ft (1.5 acres), holding approximately 7,141 plants with an estimated yield of 2,142 lbs., 1 harvest per year and estimated time to 100% yield 4-5 months.

  • Land clearing, perimeter security and irrigation system – $49,005
  • Planting equipment including transplanter – $176,418
  • Harvesting and trimming equipment – $120,000
  • Alarm & security system – $41,164
  • Monitoring – video & camera system – $28,815
  • Computer system – $20,582

Total = $435,984 or $6.7 per sq. ft.

Operational costs include soil testing, clones, fertilization and fertigation, weed control, irrigation system maintenance, drying materials, supplies, fuel, transportation, testing and labor, and total approximately $230,000 or $3.5 per square foot.

Non-operational costs include licensing, renting, professional services, administrative and marketing expenses and labor, and total approximately $280,000 or $4.3 per square foot.

As a result, the initial investment to set up your commercial outdoor cannabis cultivation business will require around $1,000,000.

How much does it cost to grow cannabis indoor?

How much does it cost to grow cannabis in greenhouse?

Potential profits for our outdoor cannabis growing scenario could be as follows:

  • Revenue + $1,004,165
  • Direct Costs – $231,558
  • Gross Profit = $772,607 (77%)
  • SG&A Expenses -$283,826
  • Operating Income = $488,781 (49%)
  • Net Income = $172,566 (17%)

More information can be found in our sample financial model below.


Cannabis Outdoor Growing Calculator

Calculate cannabis outdoor growing costs and profits with our pre-populated cannabis cultivation financial model. All you have to do to get started is enter the size of your growing area. The model will help you estimate how much it costs to start and operate your own cannabis growing business, build all revenue and cost line-items monthly over a flexible seven year period, and then total the monthly results into quarters and years for an easy view into the various time periods.

Cannabis Cultivation Financial Model Sample

cannabis cultivation financial model

Growing Cannabis Outdoor FAQs

What is the average yield of an outdoor grow?

A typical yield per outdoor cannabis plant can range from 0.15 to 0.75 pounds of dried cannabis buds or median 7 ounces per plant.

How much does it cost to produce a pound of weed outdoors?

The median average cost to grow a pound of dried cannabis flower outdoor can be around $200-$400.

'70% ready to go' business plan templates

We also offer Word document and PowerPoint pitch deck templates for your cannabis growing business.

Should you have any questions, please do not hesitate to contact us


More to read:

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How much does it cost to grow hemp for fiber and/or hemp grain?