Lancashire Hemp Farms - Caleb Kauffman, Owner
By Eric Pursh
Caleb Kaufmann, owner of Lancashire Hemp and Kaufmann’s Ice Cream, first got into the ice cream business about six years ago with his wife, brother, and sister-in-law when they refitted an old bread truck and started selling ice cream out of Penny's Ice Cream Truck. The business did well, growing to two locations (a scoop shop in downtown Lancaster, PA, and a scoop kiosk at Park City Mall in Lancaster), and the team even franchised an ice cream cart that can be booked for events. They also ended up buying a creamery so they could make their own ice cream.
But COVID put a dent into all of that. Luckily enough, Caleb was looking to begin his transition out of the day-to-day operations and management of Penny's so that he could continue to create things. He had already started dabbling in the hemp business, and today Lancashire Hemp has a growing co-op and is posied for success in 2021.
I was fortunate enought to talk to Caleb about his personal story, his transition into hemp farming, and the future he sees for the cannabis industry.
Can you tell me about how you got into hemp?
In my thirties, I was diagnosed with PTSD from childhood sexual trauma. The remembrance of that abuse actually came out of the blue, when I was in my late 20's. I was subsequently diagnosed with PTSD and at that time, we had just started Penny's, and my wife and I just had our first child. I started counseling sessions and was introduced to CBD. I literally had life-changing results.
So how did you go from there to beginning Lancashire?
I live in Lancaster County and my background was in horticulture, so I had already been working in that field for nearly ten years. I knew that CBD and hemp farming were things that I wanted to get into. When the farm bill passed in late 2018, I took my entrepreneurial spirit and love for the plant and was ready to start a hemp business.
Things really happened quickly. By March of 2019 we had a greenhouse set up and got all of our permits. It was more of a hobby or side-gig for a while. Year one was a lot of startup work. For the first crop, we planted early, harvested late summer, and in the meantime I was busy creating the brand, the packaging, labeling, and starting the ecommerce site.
During this time, around August 2019, I was also running a commercial dehydrator for a local drying facility called Keystone Agroscience. Before the end of the year, I was acting COO of Keystone. At that time they were still involved in all aspects of the process - planting, harvesting, drying, and selling. But we soon realized it made more sense for Keystone to focus on what they were great at - the drying process.
This worked out well for everyone, since Lancashire was really evolving into a co-op. When 2019 was over, we were looking to make a lot happen in the next year.
I want to ask about the pandemic, but can you first tell me about how your co-op model works?
Yes, we have about 15 farmers. As individuals, we're micro farming, which is when you're working a crop that's taking up around 5 acres. One of the main concerns initially was that nobody really had the checkbook, so to speak, and we wanted to keep things fair for everyone involved. So upfront, we all work for free, including me.
But it's still evolving. The way it works is that you pay $x per acre. I do the permitting and paperwork. I do some farming, our Amish farmers plant, tend, and harvest, Keystone dries the crop, there's an exrtaction process, and then we (Lancashire) help package, sell, and distribute. The entire process of harvesting, drying, and manufacturing takes about two and a half months.
It's a competitive industry. So we decided to focus on the smokeable market, because there are tons of oils, salves, etc. flooding the market right now. With smokeables, we get more reoccurring sales, and it's a faster sale. The going rate is around $350 per pound of product, and a percentage of each sale is distributed to each co-op member.
So what happened to the hemp business when the pandemic hit?
Well, 2020 has been a tough year because some of the outlets aren't there anymore. Things became harder because the process and extraction labs slowed... the industry slowed and investments slowed and it hit farmers. The retail side did see a small boost. But for us, the farmers, we know it's a longer term investment.
“The more you can do
and the more options
you have, the more
chances you have
to succeed.”
But this year we started to focus on wholesale accounts. We sell bulk pounds to distributors who supply the stores. We can also sell direct-to-retail, and we can do some pre-packaging for the smokeables. And next month we're moving to our own facility. The more you can do and the more options you have, the more chances you have to succeed.
So what are you looking to accomplish in the near term?
I want to get into the new facility and sell this year’s crop, and I want to build our sales outlets. We're having great conversations now, we're being recognized as good growers. You can see whats going on with THC. New jersey legalized marijuana. If PA follows suit, we may get into the THC market.
That's a good segue… for the people that don't know, what's the difference between cannabis and hemp and marijuana?
Cannabis is a genus of a type of flowering plant. Hemp is a term used to classify varieties of Cannabis that contain 0.3% or less THC content and Marijuana contains more than 0.3%. Hemp and marijuana are actually just broad terms that made there way into the mainstream.
CBD stands for cannabidiol. It's one of over 100 compounds found in the cannabis sativa species. Hemp contains a really high percentage of CBD and very tiny, trace amounts of THC. That's why CBD is extracted from hemp.
Has educating the public been an issue?
To some degree. But one of the bigger problems with the hemp industry is that it's not treated the same as other industries. It's new, and trust hasn't been established. That groundwork is still being laid, and I aim to help with that, to make it a fair playing field.
“WHAT I want people to understand is the overall spirit of what we're doing.
We're bringing mutually beneficial relationships to the hemp industry.”
Let’s talk marketing. How do you reach out to Lancashire customers?
A lot of our outreach is done on LinkedIn, although generally speaking we don't have a strong social media presence, but that's primarily due to a lack of time! My sister is a photographer, so she's been able to help us with photos for the site, and we did some SEO work with a local agency.
But what I want people to understand - our end consumers and our partners - is the overall spirit of what we're doing. We're bringing mutually beneficial relationships to the hemp industry. I also want to share my story, to help share my personal experience and how it can change people's lives.
Those are great sentiments. It's amazing to me how the themes of collaboration and trust have really come to the forefront in the past year. But I want to end with some light, rapid-fire questions for you, if you're ready.
OK, shoot...
Favorite Movie? Star Wars
Last book you read? Magic of the Ordinary by Gershon Winkler
What did you want to be when you grew up? I've never been one of those people that knew what they wanted do to… until I fell into cannabis!
What's a place you'd like to visit? Japan
Three words that best describe you? Entreprenuerial. Authentic. Kind.
Favorite thing about owning a business? The freedom that it gives you, the ability to grow as you want, the ability to create and follow your vision.
Thanks Caleb! We’re looking forward to seeing how Lancashire Hemp Farms grows in the coming year!
GROW WITH LANCASHIRE HEMP
Lancashire Hemp Online
Caleb on Linkedin