Indoor, Outdoor, Greenhouse, Hoop House: Does Grow Environment Impact Profitability For Cannabis Farmers?

As the cannabis industry continues to flourish, cultivators are faced with a crucial decision: where to grow their plants. The choice between greenhouses, hoop houses, indoor environments, or outdoor fields can significantly influence the quality of the final product, and in many cannabis markets, the cultivation environment significantly influences pricing. The question is, how does each environment affect quality, and what other factors should be considered when choosing a method?

LOCATION INFLUENCES ENVIRONMENT

The optimal cultivation method for cannabis is influenced by the local ecological environment. While outdoor cultivation can produce high-quality cannabis that rivals indoor-grown flower in certain regions, the specific conditions of a given location can significantly impact results. For example, in Washington state, the quality disparity between indoor and outdoor-grown cannabis is evident, with indoor-grown flowers commanding higher prices in wholesale markets like Tamerlane.

Using Washington State as our example, the ranking for highest (1) to lowest (6) priced products based on grow environment is as follows:

1. Indoor
2. Greenhouse (with light supplement)
3. Greenhouse (no light supplement)
4. Hoop house (light deprivation)
5. Hoop house (no light deprivation)
6. Outdoor

However, Washington State is only one example in a world of varying environments. Growers should examine pricing and purchasing trends in their region with the help of a broker such as Tamerlane Trading, who can provide real-time market insights into the most lucrative environment types. 

That said, there are still many universal factors to consider that can help determine the best grow method for profitability, so let's look at each environment's pros and cons.

GREENHOUSE

Greenhouses offer a hybrid environment that combines some advantages of indoor and outdoor cultivation. By providing a controlled structure with adjustable environmental factors, greenhouses can mitigate many of the challenges associated with outdoor growing while maintaining a more natural feel than indoor environments.

Greenhouse Cultivation Pros

• Controlled Environment: Greenhouses allow for greater control over temperature, humidity, and light levels when compared to outdoor cultivation. This can help optimize conditions for plant growth and reduce the risk of pests and diseases.
• Natural Light: Greenhouses can harness natural sunlight, which can benefit plant health and reduce energy costs compared to relying solely on artificial lighting.
• Cost-Effective: Greenhouses often offer a more cost-effective solution than indoor cultivation, as they require less energy for heating and cooling.
• Scalability: Greenhouses can be scaled to various sizes, making them suitable for small-scale and large-scale operations.
• Enhanced Control: Light deprivation (light dep) and supplementation (light supp) techniques can be utilized with a greenhouse to allow growers to manipulate the light cycle, optimizing plant growth, flowering, and overall yields.

Greenhouse Cultivation Cons

• Environmental Fluctuations: While greenhouses provide a more controlled environment than outdoor cultivation, they can still be affected by external factors such as wind and temperature extremes.
• Light Control: Managing light levels in greenhouses can be challenging, especially during periods of low sunlight or when specific lighting conditions are required for certain cultivars.

Greenhouse Quality & Profitability

Greenhouse-grown cannabis can produce high-quality yields when managed effectively. These high-quality yields can lead to higher profits in the marketplace. By carefully controlling environmental factors and implementing proper cultivation practices, growers can even achieve results that rival those of indoor cultivation while maintaining a more natural growing environment. However, the quality of greenhouse-grown cannabis can vary depending on factors such as the specific greenhouse design, location, and cultivation techniques employed.

HOOP HOUSE

Hoop houses, also known as high-tunnel greenhouses, offer a more affordable and flexible alternative to traditional greenhouses. They are typically constructed with a metal or PVC frame covered with plastic sheeting, providing a protected environment for plants.

Hoop House Cultivation Pros

• Low Cost: Hoop houses are generally less expensive to build and maintain compared to traditional greenhouses.
• Flexibility: They can be easily disassembled and moved, making them suitable for various locations and growing seasons.
• Natural Light: Hoop houses allow for significant natural light penetration, promoting healthy plant growth.
• Ventilation: The open sides of hoop houses provide natural ventilation, helping to regulate temperature and humidity.
• Enhanced Control: Light deprivation (light dep) and supplementation (light supp) techniques can be utilized with a hoop house to allow growers to manipulate the light cycle, optimizing plant growth, flowering, and overall yields.

Hoop House Cultivation Cons

• Limited Control: Hoop houses offer less control over environmental factors than traditional greenhouses, making them more susceptible to weather fluctuations.
• Structural Integrity: Hoop houses can be vulnerable to strong winds and heavy snowfall, requiring careful construction and maintenance.
• Pest and Disease Control: The open sides of hoop houses can make it more challenging to control pests and diseases.

Hoop House Quality & Profitability

Hoop house grown cannabis can produce high-quality yields, especially in regions with favorable weather conditions. However, the quality can vary depending on factors such as the specific hoop house design, location, and cultivation practices. Growers may need to implement additional measures, such as row covers or supplemental heating, to mitigate environmental challenges and optimize plant growth. Overall, hoop houses offer a practical and cost-effective option for cannabis cultivation, particularly for those seeking a balance between control and natural growing conditions. By carefully considering the specific needs of their operation and the local climate, growers can successfully utilize hoop houses to produce high-quality cannabis.

INDOOR

Indoor grows offer a highly controlled environment that allows cultivators to optimize conditions for maximum yield and quality. By carefully regulating factors such as temperature, humidity, light, and CO2 levels, growers can achieve consistent and predictable results.

Indoor Cultivation Pros

• Optimal Control: Indoor grows provide the greatest control over the growing environment, allowing cultivators to tailor conditions to specific cultivars and stages of growth.
• Year-Round Cultivation: Indoor environments enable year-round production, regardless of external weather conditions.
• Disease and Pest Control: Controlled indoor environments can help minimize the risk of pests and diseases, reducing the need for chemical treatments.
• High-Quality Yields: Indoor cultivation can produce high-quality cannabis with consistent potency, terpene profiles, and appearance.
• Enhanced Control: Light deprivation (light dep) and supplementation (light supp) techniques can be utilized in an indoor grow to allow growers to precisely manipulate the light cycle, optimizing plant growth, flowering, and overall yields.

Indoor Cultivation Cons

• High Initial Investment: The setup costs for indoor grow facilities can be significant, including expenses for equipment, lighting, HVAC systems, and building infrastructure.
• Energy Consumption: Indoor grows require substantial energy for lighting, heating, cooling, and ventilation, which can increase operating costs.
• Limited Natural Light: While artificial lighting can be precisely controlled, it cannot fully replicate the benefits of natural sunlight.
• Space Constraints: Indoor grows may be limited by available space, which can restrict the size of the cultivation operation.
• Environmental Impact: Indoor cultivation can have a significant environmental footprint due to high energy consumption for lighting, heating, cooling, and ventilation.

Indoor Quality & Profitability

Indoor grows can produce exceptional quality when managed effectively, and this quality usually translates to higher profitability in most markets. By utilizing advanced technologies, such as LED lighting and automated environmental controls, growers can optimize conditions for plant growth and maximize yield. However, the quality of indoor-grown cannabis can vary depending on factors such as genetics, cultivation practices, and post-harvest handling.

OUTDOOR

Outdoor cannabis cultivation offers a more traditional and cost-effective approach to growing. By harnessing the power of the sun and natural elements, outdoor growers can produce high-quality cannabis in a sustainable manner.

Outdoor Cultivation Pros

• Low Cost: Outdoor cultivation generally has lower initial and ongoing costs when compared to indoor or greenhouse growing, as it relies on natural resources for light, heat, and ventilation.
• Natural Environment: Outdoor-grown cannabis can benefit from the natural elements, such as sunlight, wind, and rain, which can contribute to overall plant health.
• Sustainability: Outdoor cultivation aligns with sustainable practices, as it minimizes energy consumption and waste production.
• Scalability: Outdoor grows can be easily scaled to accommodate large-scale production, making them suitable for commercial operations.

Outdoor Cultivation Cons

• Environmental Factors: Outdoor cultivation is subject to weather fluctuations, pests, diseases, and other environmental challenges that can impact plant growth and yield.
• Limited Control: Growers have less control over the growing environment compared to indoor or greenhouse cultivation, making it more difficult to optimize conditions for specific cultivars.
• Seasonal Limitations: Outdoor cultivation is typically limited to specific growing seasons, which can restrict production and availability.
• Theft and Vandalism: Outdoor grow sites can be vulnerable to theft, vandalism, and unauthorized access, requiring additional security measures.

Outdoor Quality & Profitability

Outdoor-grown cannabis can produce high-quality yields when cultivated in suitable environments and with proper care. Factors such as genetics, soil quality, climate, and cultivation practices can significantly influence the final product. While outdoor cultivation may not offer the same level of control as indoor or greenhouse growing, it can produce unique and flavorful cannabis that appeals to many consumers. This means outdoor cannabis can still offer a net positivity in terms of profitability.

GENETICS & POST-HARVEST HANDLING ARE ALSO KEY

While the environment plays a role in cannabis quality, it is not the sole determinant of quality. Genetics and the post-harvest processes of drying and curing are important factors that influence the final product.

Genetics provide the foundation for a plant's growth potential, including its yield, potency, and terpene profile. Selecting high-quality genetics is essential for producing premium-quality cannabis. However, even with superior genetics, the plant's full potential can only be realized through optimal growing conditions and proper care.

Drying and curing are critical post-harvest processes that significantly impact the quality of cannabis. Proper drying removes excess moisture, preventing mold and mildew. Curing allows the plant's terpenes and cannabinoids to develop fully, resulting in a more flavorful and potent product. Neglecting these steps can lead to a decline in quality, even if the plants were grown in ideal conditions and from superior genetics.

ENSURING FAIR PRICES FOR YOUR PRODUCT

Achieving high-quality cannabis with favorable profitability requires a holistic approach that considers the interplay of environment, genetics, and post-harvest handling. While each of these factors is essential, they are not mutually exclusive. Growers must strive for excellence in all three areas to produce exceptional cannabis that meets the demands of discerning consumers and achieves the highest possible profitability. But once the work is done, and the product is ready for the market, how can producers be sure they are receiving the fair market price they deserve? 

More and more growers are utilizing data-driven and AI-supported grading tools like Cannafax to help identify a quality grade and fair market value for their product. With a quality score based on the International Cannabis and Hemp Standards (ICHS) 100-point grading scale, this knowledge empowers producers to confidently position their product in the market, ensuring buyers perceive the value and price as fair and trustworthy.

Ready to learn more about the unique pricing trends based on environment in your area? Reach out to us at Tamerlane today for free appraisal and data insights or to join our marketplace.