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How to Start a Marijuana Seed Bank Business Pt. 1

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How to Start a Marijuana Seed Bank Business Pt. 1

Learn how to start your own marijuana seed bank business in part 1 of our guide.

Introduction

A marijuana seed bank that sells marijuana seeds may ship the seeds into the United States and many other countries around the world. Marijuana seeds, also known as cannabis or weed seeds, are sold categorized by name, genetics, plant sex, and other attributes. A seed bank might simply collect the seeds for their own preservation; however, most seed banks tend to sell to consumers.

As of early 2020, hundreds of marijuana seed banks exist with websites that allow consumers to buy various cannabis seeds, shipped discreetly to their home or business address.

Certain marijuana seed banks only sell their own brand of seed strains. The large majority of marijuana seed banks sell seeds from other brands, or breeders.

Whether you decide to breed your own or simply resell, knowing the top breeders and most popular strains is crucial to understanding the wants of consumers.

Legal Aspects of Starting a Marijuana Seed Bank

Years ago, most of the marijuana seed banks registered their businesses in either the UK or the Netherlands. Both countries allow for the sale, possession, trade and purchase of cannabis seeds legally, although neither country permits cultivation of cannabis.

Today, Spain is the most popular place to start a cannabis seed bank, due to the legality of cannabis seeds and cultivation in Spanish law.

Whatever country you decide to open your marijuana seed bank business in, be sure to carefully consider the local regulations, state and federal laws before doing so.

Creating Your Seed Bank Website

The website for a marijuana seed bank must be able to display and categorize your products, allow customers to purchase the products and keep stock inventory.

An eCommerce CMS (content management system) is often used as the software for the online store. The most popular being WordPress, Magento and Shopify.

You may consider learning the software yourself or hiring a developer, although with seed banks especially you will want this to be someone you can trust.

Payment Processing

By far the most difficult aspect of running a marijuana seed bank website is credit card processing. Due to the high risk nature of the marijuana seeds business, most of the easiest methods will not work very long.

Many seed banks are in a constant state of finding better payment processing solutions. High risk merchant accounts for marijuana seed banks exist that may help with this, although for a considerable cost.

Buying cannabis seeds with Bitcoin is perhaps the easiest solution for marijuana seed banks to receive payment; however, only a small percentage of consumers pay with this option.

A guide to buying cannabis seeds

The first couple months of the year is a great time to start planning your cannabis garden to get a head start on the outdoor growing season, which roughly runs from March to November, depending on where you live.

Navigating the cannabis seed market can be challenging when states have different degrees of legality. This guide will answer your questions on buying seeds so you can be on your way to growing your own cannabis.

Is it legal to buy marijuana seeds?

Marijuana seeds are considered a cannabis product just like flower, edibles, and concentrates. Their legality depends on which state you live in. People living in states with adult-use legalization can buy, produce, and sell seeds within their own state, but seeds can’t cross state lines. People living in states with medical marijuana legalization can only buy seeds if they have a medical card.

Seed banks exist outside of the US and can sell them for “souvenir purposes,” but it is illegal to bring seeds into the US and Customs will seize any cannabis seeds they find in packages or on a person.

Where can I buy cannabis seeds?

Many world-renowned seed banks are overseas in the Netherlands, the UK, Spain, and other countries where cannabis laws are less restricted. Seed banks provide seeds from a variety of different breeders.

In states with adult-use legalization or a medical marijuana program, you can buy seeds within your own state, either at a dispensary or through a specific seed company’s website.

Can you buy cannabis seeds online?

Before you purchase seeds online, you’ll need to figure out what strain you want to grow and what breeder you want to buy from.

Because US federal law still prohibits cannabis, it can be hard to find information on seed banks and breeders. Breeders who have a long history and positive reputation are usually a good place to start.

Check out our explainer and buying guide to cannabis seed banks for more info on buying seeds.

To get an idea of what well-established breeders look like, check out:

Europe

  • Sensi Seeds
  • DNA Genetics
  • Dinafem
  • Green House Seeds

US

  • Southern Humboldt Seed Collective
  • Exotic Genetix

You can also do some research and find an online grow journal that details the whole growing process of a specific strain from a particular breeder. Through these, you’ll be able to look over another grower’s specific notes and see pictures of the final results.

If you grow some seeds and like the results, try growing another strain from that same breeder and see how it goes.

Do dispensaries sell cannabis seeds?

Some dispensaries in medical and adult-use states sell seeds, but not all. Be sure to check or call ahead to see if they sell seeds. Buying marijuana seeds at the dispensary is far more straightforward, however, your options will be more limited than shopping online.

Dispensary staff should be able to give you information on the seeds they’re selling, but keep in mind that a lot of dispensaries focus on selling flower and end-products. It’s a good idea to call ahead and talk to staff to see if they are knowledgeable about seeds and can give you specific information on growing.

How to look for quality genetics when buying marijuana seeds

Breeders talk about “unstable genetics,” meaning that a seed’s origin is unknown. Make sure that when you buy a packet of seeds that it or the breeder who produced them can list where the seeds came from and how they were crossed and/or backcrossed to get the seed that you hold in your hand. If you can’t get a seed’s history, it could be anything and the result of poor breeding practices.

An inexperienced breeder might cross a male and a female one time and sell the resulting seeds as a new hybrid strain, but professional breeders usually put their strains through several rounds of backcrossing to stabilize the genetics and ensure consistent plants that reflect those genetics.

Which strain should I grow?

Even one weed plant can produce a lot of buds come harvest time, so make sure you grow a strain you like. Note strains you enjoy when you pick something up at the dispensary or smoke with friends, and look for seeds of it when you want to start growing.

Some strains are easier to grow than others because they are more resistant to mold and pests, so if you’re new to growing, you may want to try an easier strain to start.

Some strains also take longer to grow than others. Depending on whether you’re growing indoors or outdoors, you may want to grow a quicker marijuana strain if you live in a climate that get cold and wet early in the season. For example, indicas are known for having a shorter flowering time than sativas.

All of this information should be available to you when buying quality seeds.

What’s the difference between regular, feminized, and autoflower seeds?

Regular seeds

If you buy a packet of regular seeds, they’ll come with a mix of males and females. A lot of cultivators prefer to grow these because they haven’t been backcrossed—essentially inbred—as much as feminized or autoflower seeds. You’ll need to sex out the seeds once their reproductive organs show during the flowering phase and discard the males—because they don’t produce buds and will pollenate females, resulting in seeded flowers.

Feminized seeds

Seeds can come feminized, meaning you can just put them in soil and start growing for buds. These seeds are guaranteed to be bud-producing females and growing them cuts out the step of having to sex out plants and discard the males.

It also reduces the risk of having a stray male sneak into your crop—just one male can pollinate a huge crop, causing your females to focus their energies on producing seeds instead of buds.

Autoflower seeds

Autoflower plants change from the vegetative to flowering state with age, not the changing of their light cycle. They have a short grow-to-harvest time and can be ready to harvest in as little as 2 ½ to 3 months from when you put the seeds in the ground. The downside is that, typically, they are less potent, but autoflower seeds are great for people who want to grow cannabis but don’t want to spend a lot of time doing it.

How much do marijuana seeds cost?

Cannabis seeds usually come in a pack of 10 or 12 seeds and start at around $40 a pack and go up from there. Some high-end genetics can run between $200 to $500 a pack.

Feminized and autoflower seeds will cost more because more breeding work was put in to creating them and they take less time for the grower to get buds.

How many seeds should I buy? Are they all going to survive?

When you grow any amount of seeds, a percentage of them won’t germinate, even if you get them from a reputable breeder. Always count on a few not germinating or dying off, or roughly 1/4 of the total you put in the ground.

When growing regular seeds, some won’t germinate and some will have to be discarded because they’ll turn out to be males. With feminized seeds, some won’t germinate, but a higher percentage of them will turn into flowering plants because there won’t be any males.

If you want six total cannabis plants to harvest for buds and are growing from regular seeds, start with about 4 times as many, or 24 seeds. Some won’t germinate and some will turn out to be males, and then you’ll want to discard down to the six best phenotypes. If growing feminized seeds, you can probably start with about twice as many seeds in this case (about 12); a couple won’t germinate, and then discard down to the six best phenotypes.

Make sure to always stay within your state’s legal limit of growing plants.

How do I buy strain-specific cannabis seeds?

Strains like Blue Dream, Gelato, and Original Glue have gained in popularity in recent years. Check out these resources on how to buy these types of cannabis seeds:

An Introduction to the Big Business of Cannabis Seeds

Cannabis seeds can produce widely different plants. And in anticipation of national legalization, the market is evolving quietly, but quickly.

Cannabis seeds are, obviously, integral to the weed industry. With so many growers around the world, they’re in higher demand than ever. As a result, a network of online and physical retailers has popped up to satisfy both legal and grey market needs.

brazzo | Getty Images

But increased demand and legalization are changing the seed business. How will the cannabis seeds market evolve with growing demand and more legalization efforts?

The 3 main typles of cannabis seeds.

There is a great deal of variety within cannabis seeds. Specifically, you can divide them into three main types:

Regular: These contain both male and female plants, meaning that half of the plants will not flower. This kind requires more light to begin flowering.

Autoflower: Autoflowering seeds begin flowering as soon as the plant reaches maturity.

Feminized: Seeds that only produce the flowering part of the cannabis plant i.e. the female part.

Aside from the type of seed, seeds differ genetically. This means that breeders have grown them into distinct stains that can produce a wide variety of effects. This is where the real value in cannabis seeds lies.

Why genetics matter.

Anyone who has ever consumed cannabis in any of its forms knows that strain matters. This goes beyond sativa vs. indica. Strains can be bred to produce a variety of effects and serve purposes that go way beyond flavor. For example:

High-CBD hemp seeds are ideal for creating potent cannabis oil.

Strains can be bred for pain management and other medical purposes.

Plants can be genetically altered for shorter, better yields.

Specific types of hemp create stronger, longer lasting fiber.

Not only is the ability to create products with distinct terpene flavor profile a great way to appeal to consumers, but the right genetics can produce vastly different effects with medical and economic advantages. And the more the medical and recreational markets grow, the more demanding consumers are of their weed products and the more competition there is when starting a cannabis dispensary or another type of business.

Who sells cannabis seeds.

Anyone can sell cannabis seeds but not all vendors are legal. International drug laws do not strictly regulate cannabis seeds because they have a variety of uses — animal feed, oil production, clothing material — but some countries are stricter about their importation than others.

Like the sale of growing equipment, cannabis seeds are adjacent to the weed industry but not strictly apart of it. This makes controlling or even studying the market difficult.

Different types of vendors.

According to one scientific paper published by the United Nations Office on Drugs and Crime, there are three different components to this business:

1. Seed companies: Seed companies produce the seeds. The majority are based on the Netherlands or Spain due to their more lenient laws. There are around 122 large scale seed companies in Europe, according to the UN’s research.

2. Breeders: Breeder cross-breed strains to create new ones. They can work for seed companies or conduct their own experimentation.

3. Resellers: There are many more resellers than either of the above two categories. Resellers will often sell product from a variety of companies and can inhabit a legal grey area, catering to black market weed vendors as well.

Marijuana law remains hazy. Today, an increasing number of companies are patenting weed technology, seeds, and the hottest cannabis products. But whether those patents are enforceable, and where they are enforceable within the U.S., remains to be seen.

Plant breeders’ rights

Since the 1960s, plant breeders can have exclusive control over a new variety of a plant they create for twenty years following a submission to the plant variety office. Control over everything from seeds to cuttings is given to that breeder for that period of time if that office decides that their plant is genetically or physically distinct. As a result, plant breeders’ can technically have unique rights to the cannabis seeds they breed.

In the U.S., you can also patent genetic varieties of any plant. This includes cannabis seeds. Though the U.S. Patent and Trademark Office is federal, it operates independently of other government agencies. This means that you can patent weed strains, and many companies have done so already.

However, even if someone does rightfully own a patent of a certain type of seed, that doesn’t mean that their patent is enforceable nationwide.

According to the United States Patent and Trademark Office, you can patent asexually reproduced plants if they possess certain characteristics due to their genetics or if they’re a hybrid version of a different plant. According to one Reuters report, 39 cannabinoid-related patents were filed in 2018. Cannabinoids are the compounds found in weed that vary from strain-to-strain.

The vast majority of these patents went to drug companies. A few went to universities and other entities.

Another industry that will boom post-legalization.

Cannabis law is still under development. However, entrepreneurs and big companies alike are increasingly patenting a major element that can set their product apart from the rest: cannabis seeds. With the rights to a signature strain, there are two things that can be done:

Sell them over the internet or in stores to the increasing number of growers and individuals looking to produce their own weed

Today, people all over the internet are selling cannabis seeds with little to no oversight but, seemingly in anticipation of legalization, corporations are striving to control everything from plant genetics to technology. This could help certain ahead of their time companies could control major industries like CBD — all thanks to seed patents they’ve filed today.