CBD with Dennis Dean of Lakeland Hemp

Sep 23, 2022 | iHemp Hour

From Harvest to Market: How Lakeland Hemp Built a Thriving Vertical CBD Operation in Northern Michigan

Fifth-generation farmers Dennis and Eric Dean share their award-winning innovations, hard-won lessons, and blueprint for profitability in a challenging industry

The first day of autumn marks the beginning of harvest season for Michigan hemp farmers—a time of anticipation, hard work, and for some, the anxious wait for THC test results that can make or break a year’s investment. On this week’s iHemp Hour, we sat down with Dennis and Eric Dean of Lakeland Hemp, a father-son team who have not only survived the brutal shakeout that reduced Michigan’s hemp growers from over 700 to just 76, but have emerged as one of the state’s success stories.

Located just north of Traverse City on Michigan’s scenic 45th parallel, Lakeland Hemp represents what vertical integration looks like in practice—from seed to shelf, they control every step of their CBD operation. And this year, they’re bringing home hardware: the team won first place for Product Innovation at the Hempies Awards for their ingenious hemp bucking machine.

The Reality Check: Why Most Hemp Farmers Failed

When Michigan legalized hemp cultivation following the 2018 Farm Bill, hundreds of farmers rushed into the market with dreams of CBD riches. Eric Dean, who brought cannabis cultivation experience from Alaska dating back to 2006, convinced his father Dennis to convert an unused field into hemp production as soon as Michigan’s program launched.

“We jumped in head first. Fortunately, we didn’t drown. Really close.” — Dennis Dean

The first year delivered a harsh lesson that many farmers didn’t survive: the promised biomass market collapsed.

“Originally it was going to be just biomass and they were going to pay us enough money so it was going to make a very profitable venture. Well, that all went to the wayside in the first year. And then with COVID, we couldn’t even go to the expos to sell our product.” — Dennis Dean

The Deans pivoted quickly. Rather than selling bulk biomass at plummeting prices, they made the strategic decision to become fully vertically integrated—controlling everything from cultivation through retail sales. It’s a model that both the hemp and cannabis industries are recognizing as essential for survival.

Building a Direct-to-Consumer Business

With farmers markets closed and industry expos cancelled during COVID, Lakeland Hemp built their lifeline online at lakelandhemp.com. The results speak for themselves:

  • Sales to over 30 states through their website
  • 50%+ annual growth since launching their direct-to-consumer model
  • A “one-stop shop” offering flower, biomass, clones, isolates, kief, tinctures, lotions, and salves
  • Even small quantities of biomass for the growing community of home processors

“If you have a satisfied customer and they keep coming back to you, then you’ve got a steady stream. And then the website naturally is always reaching out—the more people that hit your site, the more popular you are.” — Dennis Dean

Payment processing has been a significant hurdle for hemp businesses, but Lakeland Hemp found success with Square, which handles all their web commerce without the complications many CBD businesses face with traditional merchant services.

The Farmers Market Advantage

Dennis still works farmers markets with their lotions, tinctures, and salves—and sees them as powerful education opportunities despite the occasional “side eye” from passersby who don’t understand the difference between hemp and marijuana.

“Good marijuana’s got to be what, 25%? So you’d have to consume a lot of hemp even at 0.3% to get the same effect. Grand Paul down in Kentucky said you’d have to smoke a joint the size of a telephone pole to get high from hemp.” — Dennis Dean

The farmers market strategy works particularly well for topical products. Dennis offers samples to skeptical customers with aches and pains:

“They’ll rub it on their lower back and come back in 15-20 minutes saying, ‘Wow, that stuff really works!’ They’ll come back and buy it.”

The Award-Winning Bucker: Innovation Born from Necessity

Anyone who has hand-bucked hemp knows the pain—literally. The repetitive motion of stripping flower from stems leads to tennis elbow, wasted hours, and inconsistent results. Eric Dean and a machinist friend decided there had to be a better way.

Their solution? A brush-based bucking machine that won first place for Product Innovation at the Hempies Awards.

How It Works

  • A variable-speed brush strips dry plants of their flower
  • Material feeds into a hopper connected to a conveyor belt
  • Flower moves up into a fully mobile super sack holder
  • Safety features include automatic shutdown if hands get caught
  • Works with both standard dried material AND fresh-frozen plants

The Numbers

Metric

Hand Bucking

Bucker Machine

Plants per day (1 person)

~200-250

2,500-3,000

Labor equivalent

1 person

12 people

Stem contamination

Higher

Virtually none

Product damage

More compression damage

Less damage, intact buds

“I swear it’s about 12 people you’d have to hire to do what you can do with just one person.” — Eric Dean

Pricing:

  • Bucker standalone (without conveyor): $165
  • Complete system with conveyor: $215

Perhaps most surprisingly, the machine produces cleaner biomass than hand processing. The tests on machine-bucked material showed higher CBD ratios than hand-processed flower—the brush strips buds intact without crushing them or breaking off stems.

Contact Lakeland Hemp directly for orders, as the website listing is still being finalized.

Cultivation Secrets: Early Varieties and Seedless Technology

The Deans have refined their approach through trial and error, now focusing on approximately 4 acres with around 7,000 plants—about 2,000 plants per acre with tight spacing.

The Spacing Strategy

  • 3-foot plant spacing within rows
  • 5.5-foot spacing between rows
  • Result: Plants grow UP rather than OUT, producing more valuable top colas

“When the plants kind of touch each other, they go up more. More top colas, and they seem to get bigger. That’s where the value is.” — Eric Dean

2022 Variety Lineup

The Deans are growing an impressive roster of strains this year:

  • Super Sour Space Candy
  • Candy Kush
  • Merlot
  • Cat’s Meow
  • Bubba’s Remedy
  • Sweet Cherry (their own proprietary strain!)
  • Cherry Blossom
  • Sour Lifter
  • Super Haze
  • And experimental seedless varieties from Oregon

The Seedless Breakthrough

Perhaps most exciting is their trial of seedless hemp varieties—using the same technology behind seedless watermelons. These plants cannot be seeded regardless of nearby pollen sources.

“If somebody’s growing grain close to you and it’s going to pollinate, those plants are not going to get seeded. It’s the same technology they use for seedless watermelon.” — Eric Dean

This could be a game-changer as Michigan expands grain and fiber hemp production, eliminating one of the biggest risks for CBD flower growers.

Testing Results

All of Lakeland Hemp’s 2022 tests passed, with the highest THC reading coming in at just 0.18%—well under half the 0.3% limit. By focusing on proven genetics and cloning their best phenotypes year after year, they’ve virtually eliminated the “going hot” risk.

“You hold your breath every year when they come in to do your test because all of a sudden your crop—all the money you spent the whole year—could be gone.” — Dennis Dean

New Product Lines: High-Potency Cannabinoid Combinations

Lakeland Hemp is launching new tincture formulations targeting specific wellness needs:

Daytime Formula:

  • 2,500mg CBD + 1,000mg CBG
  • Designed for focus and daytime use

Nighttime Formula:

  • 3,000mg CBD + 500mg CBN
  • Targeted for sleep support

“You talk about sleep—you better be ready to hit the sack before you take that one because it does definitely work.” — Dennis Dean

At $55 per bottle, these high-potency combinations represent serious value compared to many retail CBD products.

Industry News: Turbulent Times for Michigan Cannabis

Mike Brennan from Ann Arbor provided his regular cannabis industry update, with implications for the hemp sector:

New CRA Leadership

Brian Hannah, with a strong law enforcement background, took over as interim director of the Cannabis Regulatory Agency (CRA) on September 19th, replacing the popular Andrew Brisbo. Brisbo was shifted to Director of Construction Codes—a lateral move that surprised everyone in the industry.

iHemp Michigan note: With Brisbo now heading construction codes, there may be new opportunities to advance hempcrete and hemp building materials through the state’s building code process.

Market Pressures

  • August 2022: Record $189.4 million in adult-use cannabis sales
  • But: Average price dropped to an all-time low of $116.84/oz—approaching black market levels
  • Many business plans assumed $4,000/lb cannabis; now lucky to get $1,500/lb
  • Croptober (harvest season) expected to accelerate industry consolidation

Banking Hope on the Horizon

Senate Majority Leader Chuck Schumer is reportedly pushing for marijuana banking legislation during the lame duck session after November elections. If passed, this would allow major banks and credit card companies to serve cannabis businesses—currently, only smaller banks like Dart Bank, Bank Michigan, and various credit unions will take the risk.

USDA Grants $21 Million for Hemp as Climate-Smart Commodity

In a significant win for industrial hemp, the USDA awarded two major grants under its Climate-Smart Commodities program:

$15 Million to Incobrass Industries LLC

  • Project: “Industrial Hemp for Fiber and Grain”
  • States: Florida, New York, Tennessee, Virginia, Wisconsin
  • Focus: Expanding climate-smart data and modernizing practices through a digital marketplace

$5 Million to Lincoln University

  • Project: “Scaling Up Industrial Hemp Supply Chain as Carbon-Negative Feedstock”
  • States: Kansas, Missouri, Oklahoma, Texas
  • Focus: Commercializing climate-smart hemp for fuel and fiber applications

Upcoming Events

📅 Hemp Farm Grand Opening & Symposium

  • When: Saturday, September 24th at 11:00 AM
  • Where: Hemp Farm (Amanda & Philip Montgomery), Illinois
  • Details: eventbrite.com (search “grand opening hemp fiber grain”)

📅 Illinois Hemp Growers Association Disc Golf Tournament

  • When: Saturday, October 8th, 10:00 AM – 3:00 PM
  • Where: Chapel Hill Golf Course, Illinois
  • Cost: $5 per person, open to the public
  • Bonus: Bed & breakfast accommodations available on-site!

📅 NOCO Hemp Expo 2023

  • When: March 29-31, 2023
  • Where: The Broadmoor, Colorado Springs
  • Mark your calendars for this premier industry event

Advice for Aspiring Hemp Farmers

When asked if he’d encourage other farmers to consider hemp, Dennis Dean offered this wisdom:

“I would encourage them to have a plan. A plan from start to finish. The plan is the key. It’s still a lot of work and there’s still a lot of things to jump through.”

Key Takeaways from Lakeland Hemp’s Journey:

  1. Secure your market BEFORE you plant — The biomass market collapse caught many farmers off guard
  2. Consider vertical integration — Controlling your supply chain from seed to retail maximizes margins
  3. Build an online presence — Direct-to-consumer sales create recurring revenue
  4. Focus on early-finishing varieties — Late harvests mean weather risks and potential crop loss
  5. Clone your winners — Once you find phenotypes that work, keep them
  6. Test new innovations carefully — Seedless varieties and new strains can differentiate your product
  7. Budget realistically — Expect $20,000+ per acre investment in year one

Try It Yourself: Sweet Potato Soup with Red Lentils & Hemp Hearts 🍂

Perfect for those chilly autumn days ahead!

Servings: 8 | Time: 45 minutes | Calories: 272 per serving

Ingredients:

  • 2 tbsp olive oil
  • 2 medium sweet potatoes, peeled and diced
  • 1 small white onion, chopped
  • 2 cloves garlic, minced
  • 1 tbsp fresh ginger root, minced
  • ½ tbsp ground turmeric
  • 1 cup split red lentils, rinsed
  • 1 (13.5 oz) can crushed tomatoes
  • 5 cups water
  • ⅓ cup hemp hearts (available at downon thefarm.biz)
  • 1 cup full-fat coconut milk
  • Salt and pepper to taste
  • 2 tbsp apple cider vinegar (optional)

Instructions:

  1. Heat olive oil in a large pot. Add onion, garlic, and ginger; cook until fragrant, about 5 minutes.
  2. Add sweet potatoes, turmeric, tomatoes, and lentils; stir to combine.
  3. Add water, bring to a boil, then reduce heat and simmer 25-30 minutes until sweet potatoes are fork-tender.
  4. Stir in hemp hearts and coconut milk. Season to taste.
  5. Optional: Add apple cider vinegar for brightness.

Recipe credit: Simple Green

Special Offer 🎉

Use code SUMMERSEND10 at lakelandhemp.com for 10% off any products!

Celebrate the new harvest with Michigan-grown, farm-to-table CBD products from one of the state’s hemp pioneers.

The Deans represent what’s possible when farmers combine agricultural heritage with innovation and adaptability. Five generations of working the land north of Traverse City have taught this family that crops change, but commitment to quality never does.

As Eric put it: “We are turning a profit now. Being integrated from the flower all the way to the top—that’s the key.”

Growing the future from seeds of the past.