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WilliamstownCannabis CultivationBusiness PlanDavis Collison and Rosa Kirk-Davidoff

We are on the stolen land ofthe Stockbridge-MunseeBand of the Mohican.

“The legal marijuana industry has the potentialto save local farms and repair a broken foodsystem.”- Suehiko Ono, EOS Farms

Introduction Davis and RosaWho we areEnvironmental Planning Averill CookSenior Seminar forEnvironmental StudiesMajorsThis project - WilliamstownCannabis CultivationQuestions: Best scale to start?Opportunities for a craftmarket?Jake Zieminski

Our Clients Averill H Cook Averill CookJake ZieminskiBorn and raised in Williamstown.BS degree from University of VermontOwned and operated a pellet manufacturing business for12 yearsTraveled throughout numerous countries consulting inwood energyMaintained an operated Wendling Farm in Williamstownwhere he grew upSuperior land stewardship has been paramountthroughout his career

Our Clients Jake Zieminski Born and raised in Cheshire Ma on family dairy farm. Lived inBoston for 20 years and recently moved family back in 2018 tolaunch cannabis start-up.Cannabis Entrepreneur Averill CookJake ZieminskiCurrent owner of CAVU Hemp, Cheshire Ma- MDAR licensed 20192021- CCC – Marijuana Cultivation ApplicantCannabis Activist, Educator and Advisor since 2014Prior 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 clientbased performance improvement roles atPricewaterhouseCoopers(PwC), FTI Consulting and a Bostonbased addiction clinic start-up.Education: Providence CollegeBS Management and FinanceLiberal Arts Concentration

Methodology Client meetings Site visits Wendling Farm Soil tests Interviews Online Research Case studies CCC regulatory research

Interviews Cultivators Ted Dobson John Moore Roaring Glen FarmsRetail Donna Norman Equinox Farm, Theory WellnessTed de-equinox-farms-first-cannabis-harvest/article 80261c50-e6c05a4b-87ec-828abffaf0bd.htmlCalyx Berkshire DispensaryOther Experts Sam Milton Marion Mcnabb Climate Resources GroupPresident of Cannabis Center of Excellence, INCTony Kieffer Arch SolarZoom Interview with Dr. Marion Mcnabb

Intro to Cannabis s-plant/

Types of Licenses Tier 1 (1,000-5,000 ft2)-Tier 11 (90,000-100,000 ft2) Cannabis Control CommissionIndoor CultivationOutdoor CultivationGreenhousesMicrobusiness: Tier 1 cultivation and/or product manufacturerCraft Marijuana Cooperative

Business Plan

Executive SummaryMission:Year 1: Tier 6 (50,000 sq ft) outdoor grow, Tier 1(5,000 sq ft) indoorProvide a sustainable and high-quality butgreenhouseaffordable product through the outdoorYear 2: Continue with a Tier 6, reinvest in facilities to enablecultivation of cannabis.expansionYear 3: Expand to Tier 11 (100,000 sq ft) outdoor grow, prepareapplication for product manufacturing and retail licensesYear 4: Tier 11 grow, continue application process and build capacityfor manufacturing and retailYear 5: Tier 11 grow, begin manufacturing and retail operations

Startup SummaryFence & security 200,000Greenhouse 600,000Labor 250,000Plant-relatedexpenses 150,000Legal & licensing 200,000Equipment 400,000(Land) 500,000Sales & marketing 100,000Total 2,550,000

Financial Summary

Market Overview: US Cannabis Market Increased legalization bystatesPossibility of federallegalization280e Schedule 1 DrugNational average price: 1,846 as of Nov. 27Regional price see-if-marijuana-legal-your-state-n938426

Target Market: Massachusetts Average wholesale price foraverage-quality indoor marijuana: 3,800/lb as of March 2020More than 2x national averageDemand supply 90 licensed retailers40 licensed cultivatorsOnly 4 licensed outdoor cultivatorsComplicated regulatory process10.75% excise tax, 6.25% sales tax

SWOT Analysis

Massachusetts Regulatory Framework

Williamstown Regulatory Process

Marketing Strategy - Craft Cannabis Opportunities unique to cannabis Terroir--outdoor grown as a specialty productExample: Craft beer Genetic diversityThere are strategies that are already in placeConsumer education required Culture of local food & drink in the /

Marketing Strategy - Certifications Sun & Earth Sun Grown Earth Care & Cultivation, Human Empowerment and CommunityEngagementNo supplemental lighting during flowering, otherwise only to extendnatural daylightCannabis Conservancy 45 Standards of Sustainability

Cultivation Plan Outdoor Tier 6 (50,000 sq ft) grow w/ a Tier1 greenhouseGreenhouse is closed & includes HVAC,supplemental lightingClosed greenhouse enables keeping mothersalive through the winterAlternative strategy start from seeds eachyearUse companion crops to support pollinators,limit erosion, and control smell

Cultivation Risks Outdoor cultivation offers morerisks than indoor MildewPestsBad weatherEstimated 30% crop loss per year

SustainabilityEnergy Indoor cultivation is extremely energyintensiveMA has energy standards thatencourage LED lightingSustainable future for cannabis isoutdoor grownLeast energy use save seeds & startfrom seeds each -risks-outdoor/

Cultivation Timeline & ForecastTier 6: 2,000 lbsTier 11: 4,000 nnabis-growing-calendar

Organizational rHead CultivatorManagementStaffManagementFull-time Assistant Cultivators(4)Planting and HarvestAssistants (6)

Financial PlanTier 6Tier 11Price/ lb 2,500 2,500# of lbs2,0004,000GrossRevenue 5,000,000 10,000,000Estimates: Crop loss 30% Local taxes 3% State taxes 10.75% Federal taxes based on income

Startup Costs BreakdownGreenhouse— 650,00 Capital cost 131.50 /ft2 Energy cost 27.64 per ft2/yrLabor— 250,000 salaries & training for both full time andtemporary labor Managers need background checksFence & Security— 200,000 fence, security cameras, & storage of datarequired by MA regulations

Startup Costs Breakdown (CONT.)Equipment— 400,000 could include tractor,harvesting equipment, drying &curing equipmentLicensing— 16,175 Tier 6 Outdoor ApplicationFee 1,700 Annual LicenseFee 13,750Tier 1 Indoor Application Fee 100 Annual License Fee 625Legal Estimate— 100,000Plant Costs— 150,000 Includes seeds, pots, nutrients,pesticides, row cover, tags,testingSales/Marketing— 100,000Land— 500,000

Recommendations &Final Takeaways

Final Takeaways As currently set up, regulations in Massachusetts are very expensive forsmall farmers and need to be changed in order to uplift these farmersStrategies we’ve seen to address the high start-up costs: Ted Dobson/ TheoryJohn Moore/ Roaring Glen FarmsJake and Averill’s partnership Need strategic partnerships

Alternate Strategies Saving Seeds (Instead of mothers/cloning) Lowest cost long and short termLowest carbon footprint Only need a hoop houseAllows for specialized geneticsDecreased harvestCraft Marijuana Cooperative Allows for resources to be pooled

Policy Recommendations National: Remove marijuana from Schedule 1 listState: Make licensing process easier for farmers Local: No limits on farm size at the local level Faster process, make sure approval lines up with planting seasonMicrobusiness size is not profitableDon’t further limit the options for farmersLocal municipalities need to be strategic partners to farmers, not anadditional cost or another barrier

Thank you!Professor GardnerOur clients: Jake Zieminski, Averill CookInterviewees: Ted Dobson, Sam Milton, Donna Norman, John Moore, MarionMcnabb, Tony KiefferSteve FogelAgricultural Commission(And Lucas the dog)

Appendix

Energy Use– IndoorMarijuanaCultivation

-savings-indoor-agriculture-facilitiesIndoor Energy Cost Breakdown

CannabisCultivationInnovationDriving CostReductions

ProductionCost TrendsNationalData*Not adjusted for Ma

Financial Estimates Breakdown (Excel Sheet)Our estimates for priceNational Average Price

Bibliography (1)Adams, Dan. “Sky High: Mass. Marijuana Is among the Most Expensive in the Nation - The Boston Globe.” BostonGlobe.Com, 16 Sept. -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. -cannabis-interview.Cowgill, Terry. “‘Grown in the Berkshires’: First Outdoor Cannabis Growing Facilities in the State Planned for Sheffield.” The Berkshire Edge, 8Apr. 2019, tate-planned-for-sheffield/.DSouza, Deborah. “The Future of the Marijuana Industry in America.” a.asp. Accessed 15 Nov. 2020.Guidance for Farmers. Cannabis Control Commission, 16 Jan. 2020.Koh, Adam. “COVID-19 Strikes Wholesale Cannabis Market.” Cannabis Business r-sales-prices/. Accessed 15 Nov. 2020.

Bibliography (2)Lastreto, Nikki. “Why Choose Sungrown Cannabis, and What Makes Outdoor Cultivation Superior?” MERRY uperior. 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, tdoor-sustainability/. Accessed 3 Nov. 2020.“---.” Theory Wellness, tdoor-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 BusinessDaily, 23 Mar. -programs-but-leveling-off/.Schoenberg, Shira. “Massachusetts Farmers Who Want to Grow Hemp Are Stymied by State Law.” Masslive, 13 Mar. urrent-state-law-is-locking-them-out.html.

Bibliography (3)Shapiro, Katie. “A Certified Organic Labeling Program Is Coming To Cannabis In 2020.” coming-to-cannabis-in-2020/. Accessed 3Nov. 2020.Squibb, Susan, and The Cannabist Staff. “Desperately Seeking Outdoor-Grown, Organic Marijuana in Colorado.” The Cannabist, 5 Jan. c-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.

Executive Summary Mission: Provide a sustainable and high-quality but affordable product through the outdoor cultivation of cannabis. Year 1: Tier