Ohio Valley Extracts

Business Plan for Ohio Valley Extracts LLC:

  Executive Summary
Ohio Valley Extracts LLC is a vertically integrated hemp company focused on CBD biomass farming, CBD oil and isolate production, and bioenergy innovation. Launching in 2025, the company will cultivate 160 acres of high-yield CBD hemp, generating 544,000 lbs of biomass with guaranteed purchase agreements. Founder Chris Cote has invested $300,000 in a fully-equipped CBD extraction lab, providing turnkey extraction capabilities. With advanced harvesting equipment and secured buyers, Ohio Valley Extracts LLC is projected to generate over $782,980 net profit in Year One, with long-term growth into CBD isolates, biochar, biocoal, biodiesel, and carbon credits. The company seeks $1.05M in funding for Year 2 expansion into in-house CBD oil and isolate production, bioenergy systems, and increased working capital.

  Company Description
Ohio Valley Extracts LLC is a vertically integrated hemp company focused on CBD biomass farming, CBD oil and isolate production, and bioenergy innovation. The company is committed to maximizing the value of hemp through sustainable and innovative practices. Founder Chris Cote has demonstrated this commitment by investing $300,000 in a fully-equipped CBD extraction lab. This lab is housed in a 20-foot C1D2 shipping container with fire suppression and compliance systems, providing turnkey extraction capabilities.
  Market Analysis
The US hemp CBD market is experiencing significant growth. The global industrial hemp market was valued at $11.03 billion in 2024 and is projected to grow at a CAGR of 22.4% through 2029. The US is a dominant player in the CBD oil sector, contributing significantly to the $5.24 billion global CBD oil market.
* Hemp CBD Biomass Market: Demand for hemp biomass continues to rise. However, challenges such as price volatility and geographical processing limitations persist.
* CBD Oil Market: North America generated $3.09 billion in CBD oil revenue in 2024, with online sales and direct-to-consumer strategies gaining traction. Market expansion is expected in CBD-infused beverages, edibles, and pet CBD products.
* CBD Isolate Market: The demand for high-purity CBD isolate is rising in pharmaceutical and nutraceutical sectors. The sector is expected to grow due to demand for THC-free products and precise dosing formulations.
* Regulatory Landscape: The FDA is tightening oversight, while the Cannabinoid Safety and Regulation Act (CSRA) aims to establish a federal regulatory framework for hemp-derived cannabinoids. State-level regulations continue to evolve, impacting market access and compliance requirements.

  Products and Services
Ohio Valley Extracts LLC offers a range of products and services, including:
* CBD Biomass Farming: Cultivation of high-yield CBD hemp on 160 acres in Year 1, expanding to 1,000 acres by Year 2.
* CBD Oil and Isolate Production: In-house production of CBD oil and isolate, starting in Year 2. The company has a fully-equipped CBD extraction lab with turnkey extraction capabilities.
* Bioenergy Innovation: Conversion of hemp waste into biochar, biocoal, biodiesel, and syngas. Monetization of carbon credits.
The company uses specialized equipment for harvesting and processing, including:
* Formation Ag CleanStrip Harvester + GrassHopper for field stripping and collection.
* Komel RK Master 1200 Pro Baler for immediate post-harvest baling.
* Baixin Heat Pump Dryer with a 3,000 lbs/day drying capacity for pre-extraction processing.
* 20-foot C1D2 certified extraction container with built-in fire suppression and compliance features.
* GroeNoord hemp harvesting solutions for fiber, seed, and flower separation (used in the broader industry).

  Operational Plan
Ohio Valley Extracts LLC’s operations are guided by detailed SOPs to ensure efficiency and compliance.
* Seeding (Field Prep and Planting): Soil preparation, calibration, seeding rate adjustment for photoperiod and autoflower CBD, planting, and irrigation/fertilization.
* Harvesting and Immediate Baling (Fresh Storage): Flower stripping, biomass collection, transfer to baler, immediate baling, and storage in ventilated, shaded barns or cool indoor facilities.
* Daily Drying for In-House Extraction: Daily draw of 3,000 lbs of baled biomass, unbaling and fluffing, drying settings adjustment, and post-drying storage in sealed, food-grade containers.
* Extraction Capacity Management: Scheduling extraction from daily-dried batches, maintaining a buffer inventory of dried biomass, and tracking daily input/output.
The company has a clear storage strategy for biomass intended for in-house extraction versus broker sales.
6. Management and Organization
Ohio Valley Extracts LLC is led by Founder Chris Cote, who has invested $300,000 in a fully-equipped CBD extraction lab. The company’s organizational structure will be developed further as it expands, with key personnel responsible for farming operations, extraction, sales, and administration.
7. Financial Projections
Ohio Valley Extracts LLC has detailed financial projections for the next five years.
* Year One Plan (2025):
   * Total Acres: 160 acres (80 Autoflower, 80 Photoperiod)
   * Yield: 544,000 lbs biomass
   * Buyer: US Hemp Brokerage LLC (offtake at $3.80/lb)
   * Total Revenue: $2,067,200
   * Total Costs: $1,284,220
   * Net Profit (Year One): $782,980
* Five-Year Expansion Plan:
   * Year 2 Goals (2026):
     * Expand to 1,000 acres of hemp
     * In-house CBD oil and isolate production
     * Process 600,000 lbs of biomass: 75,000 L oil ($7.5M), 52,500 kg isolate ($21M)
     * Biomass Sales: 3M lbs ($11.4M)
     * Total Revenue: $39.9M
   * Bioenergy Expansion (Years 3-5):
     * Convert waste into biochar, biocoal, biodiesel, syngas
     * Monetize carbon credits ($30-50/ton CO2 offset)
     * Milestones:
       * Year 3: Biochar, biocoal launch
       * Year 4: Full biodiesel production
       * Year 5: Carbon credits revenue
* Funding Needs:
   * $1.  05M (Year 2)
   * $150K - CBD isolate equipment
   * $400K - Bioenergy systems
   * $250K - Facility/workforce
   * $250K - Working capital
* Investor Returns:
   * Equity Stake: Negotiable
   * Projected ROI: 40-60% annually
   * Exit Options: Buyout or profit-sharing (Year 5)

  Competitive Advantage
Ohio Valley Extracts LLC has several competitive advantages:
* $300K extraction lab: ready extraction capacity.
* Guaranteed biomass sales.
* High-margin CBD isolate production.
* Hemp waste-to-energy systems.
* Carbon credit eligibility.
* No THC/THCA - low legal risk.