....and all the infused products licensees just gasped.

[muir]

http://finance.yahoo.com/news/two-rivers-sub-signs-two-111500452.html;_ylt=AwrBEiH5fAZUnQEANl_QtDMD

 

[Capulator]

Glad I am in CALI!!!

 

[WalterWhiteFire]

Gotta have a helluva season to swing 2.1 million just for rent.

 

[Tuku]

GrowCo greenhouses use state-of-the-art technology and skillsets used in commercial agriculture, which significantly reduces energy costs utilizing natural sunlight and natural open-air convection flows.

I would love to see what this looks like!

 

[BubbaG]

The guys with the water rights rule at the end of the day.

 

[20kwDreamer]

I would love to see what this looks like!

Probably how the green houses in the Netherlands look...but with more cowbell. Haha

 

[LocalGrowGuy]

The guys with the water rights rule at the end of the day.

My father grew up on a farm in rural Nebraska. I remember his father talking about living through the depression etc., and he used to say:

"Whiskey is for drinkin', water is for fightin'."

 

[Cort]

During the gold rush it wasnt the miners who got rich, it was the outfitters.

 

[BubbaG]

This is from a brain exercise thread I did on RIU a year and a half ago. I should go pitch the dudes with water rights my idea lol.... they got all the scratch anyways..... old money.

"So, I still think it would still be cost effective to buy the 3 MW genset and build a central facility where it is entrained, along with a commercial kitchen, nice call. Then on the greenhouse side, you could add greenhouse modules (say each module would be 1/10 of an acre) as demand rose. Probably the Quonset type would be most cost effective. I would go ahead and stub up hot water heating supply and return lines and electrical at each future greenhouse module site though as it would be most cost effective during original construction. The key here is if you could count on selling the surplus power at breakeven or with a profit ;-) much of that would depend on negotiating a reasonable long term gas purchase contract to keep from paying retail for fuel. (Or you could keep a few thousand pigs and draw the methane off the poo as the genset will run on methane also. Not my favorite scenario.... Imagine the aroma cross between super skunk and pig shit at the facility.... :shudders:)

When I first started thinking about it, I knew a 1 acre greenhouse would be wildly inefficient just from its size alone. I bet you could get the same square footage with modular pieces for less than $90/ sqft and have an efficiency gain on energy consumption.

One things for sure in my mind, I am a firm believer that we will all underestimate the demand for recreational herb right out of the gate. I also firmly believe that demand will grow steadily year over year as folks realize the sky ain't fallin.

I appreciate all the comments. I may actually put a business plan together based on what comes out of the state for regulation.... and the rat bastard Feds.
Bubbagineer, Feb 15, 2013

Here's the link to the thread if you're curious... well I reckon that ain't allowed :) you can drop the following into Google and it'll take you right to it though.

Distributed power generation and commercial cannabis cultivation

 

[true grit]

The guys with the water rights rule at the end of the day.

Right, when my homie first talked at attnys for shit possibly in Pueblo first they said was- water and water quality will be the issue.

 

[GreenintheThumb]

Pay 150k a month to rent a 90,000 sq ft greenhouse? Or pay 25k a month to rent an 80k sq ft indoor grow. Spend 25k a month on electric, build out for 3 million and pay that back at 100k a month for three years. You just equalized you production cost for indoor vs outdoor. And I wonder which flower will be worth more at the end of the season. This sort of shit will not be a game changer. The game changer is when the big money comes in and builds out a million sq ft under glass and is willing to operate at a loss for a few years. Now THAT'S going to fuck up the market and it's on the way.

 

[BubbaG]

At that scale they won't have to take a loss.

 

[Skoosh]

Hmm, time to go visit the friend of mine who JUST moved down there.

 

[We Solidarity]

It was only a matter of time before big ag got in on it. I've known these guys for a while they're some of the bigger players in the world when it comes to greenhouses...just google Van Wingerden.

 

[Texas Kid]

In Colorado warehouse space has hit between $15 and $18 bucks a square foot to rent, so your really looking at closer to $100,000 a month in rent and more like $80,000-$100,000 per month in electric and another $50,000 a month in labor..and it will cost you closer $4.5 million to build out...so the ROI is a little different than what you might be thinking..and at the end of the day edibles manufacturers are not growing for trophy flowers in the jar, they are growing for bulk volume low cost product that can be extracted..they look at getting between 58-62 grams of extract (wax, shatter, oil) per pound of product on average whether it is bud, trim, or shake..the difference is that they don't waste alot of time and energy on the trimming process only bulk drying, breaking down to be extracted, or finite closely controlled production talent..if you look at strait extracts they realize about the same revenue per pound as the guys that trims and manicures high quality nugs for sale and way more if it is turned into an edible product. If you look at recreational DABS hitting $80 per gram in some places out here it gets silly the kind of money you can make off greenhouse volumes.

 

[toquer]

80 a gram? Holy crap.

 

[mastacheeser]

80 a gram? Holy crap.

The Mr. B extracts and Goldcoast stuff can hit 120-150 a gram in so cal right now

 

[toquer]

Where can I find that crap? I tried the moonrocks. Those were nothing amazing.

 

[Z-ro]

These people would have been better off to just buy their own land, so much money being thrown away on rent.

But the real question is, who is gonna buy it all? Most stores already have their supply handled, and with the states measly 5 mil population, even with the tourists, won't be able to put a dent in that production.

What is the race to go so big when there isn't even a market for it? If I were a dispo owner and they came in trying vend their products I'd tell them to get off my property before I call the police.

 

[We Solidarity]

These people would have been better off to just buy their own land, so much money being thrown away on rent.

But the real question is, who is gonna buy it all? Most stores already have their supply handled, and with the states measly 5 mil population, even with the tourists, won't be able to put a dent in that production.

What is the race to go so big when there isn't even a market for it? If I were a dispo owner and they came in trying vend their products I'd tell them to get off my property before I call the police.

The problem with buying land is that most water sources are federally regulated, and the ones that aren't usually have zoning conflicts.

So the way around that is to buy the land, start your own water distribution company and buy the water rights, have a subsidiary build the greenhouses, and then have associated businesses/investors lease the facilities from you. It's all internal, it's not like these greenhouses were ever up for lease or anything...

They also are not growing flower, they are manufacturing edibles. Flower is definitely bottlenecking at shops but edibles companies can't keep up, there is definitely a lack of supply for infused products (which represents a majority of sales in dispensaries).

We are little infants...these guys are masters. They've dominated the agricultural industry since the late 70s and are an international powerhouse. Knowing how they operate they probably already have contracts signed with people to buy their product at a set price on a specific date, since the dutch typically don't even plant it until it's sold.