Understanding the biomass pricing trends is an essential step towards establishing a successful hemp business. You can learn more about cbd, flower, fibre and industrial hemp biomass on this page
Just like in any other industry, hemp farmers and processors must work together in order to establish a fair market value for hemp products. In the hemp industry demand for quality biomass is extremely high in 2019. It is important to connect with an established hemp farming company who can buy and sell biomass at the best marketing prices. If you are looking to buy or offload surplus, please reach out to us by contacting us here.
The Supply & Demand of Hemp Biomass Industry
For us to do this, we must understand the principle of demand and supply and how it influences the hemp business market price. We, therefore, must ask ourselves, do we have enough biomass to adequately sustain the hemp processors in 2019?
The answer to this question is crucial as it will not only influence the current pricing but also impact the future. There are many factors that will affect the supply and demand for CBD rich biomass in 2019. As of 2018, there has been a severe shortage of hemp, therefore, driving up the prices. This is fueled by an incredible increasing demand for CBD products. The sky-rocketing CBD market is only forecast to grow in 2019, further pushing up demand. The 2018 farm bill will further drive up prices and demand for hemp products.
This is great news for hemp farmers and CBD extraction companies. Although there is no firm market data, at IHF LLC we know that the demand for rich CBD hemp biomass is incredibly high and we know this trend will continue into 2019 and later years. If you are looking to sell or buy and get the best prices on hemp biomass is 2019, please contact us.
The cost of hemp biomass will always be by the pound (lb). Currently, a company looking to purchase 25,000 lbs or more can expect to pay $50-$65 an lb. The prices of rich CBD hemp biomass will depend largely on the quality and resulting lab testing.
At IHF LLC, we buy all types of biomass. If you are a farmer looking to sell his hemp biomass, please contact us so we can give you an immediate quote and the best market price. You can email us or call: 800-985-9587. We respond immediately and put an instant deposit on all of our pre-orders. We also offer hemp futures and will buy your crop before it is harvested. Another popular method, is we supply the clones and seeds, then IHF LLC and the farmer split the proceeds of the resulting investment.
These are the current standard prices if you expecting to buy CBD hemp biomass:
If you are a farmer looking to sell hemp biomass, please give us a call and we will give you the best pricing for your quantity and quality. For CBD hemp biomass the price can range for $26-$35 a lb but this all depends on a variety of factors. It is best to deal with company like IHF LLC who has hundreds on clients willing to pay top dollar. We are not a broker and buy all crop direct and ship to our facility. It is important if you are a farmer to not deal with middlemen or brokers. We will cover the reasons for this in another topic.
Future price uncertainty is another factor influencing the price of biomass. Most farmers feel that there will be more biomass on sale in the future. If this happens, the prices are likely to fall rapidly since the supply will be higher than demand. The competition will be too stiff, and farmers will not make enough profit.
For this reason, farmers are looking to secure a contract early in advance as this will insulate them from pricing volatility. If the prices were expected to rise in the near future, most farmers would be hesitant to sell their products now. The uncertainty is where hemp futures contracts with big companies like IHF LLC come in.
However, because it is hard to fully predict the future, it is advisable that farmers consider selling hemp futures as this will protect them from price fluctuation. In addition, they will have a guaranteed source of revenue.
With the establishment of a better infrastructure or relationship between farmers and processors, contract buys and hemp futures contracts are likely to be the order of the day.
This means that more and more processors will already have secured their orders from their existing agreements and contracts. Results? The demand for hemp biomass will be low, and farmers will be forced to sell their products at a lower price.
We just came from the Christmas festivities. Vacations and holidays characterized the last few months of last year. During these holidays, businesses tend to stagnate. This means that farmers and suppliers are coming back to a market. However, with 2018 having come to an end, it is expected that the hemp biomass prices are now going to stabilize. Stabilize but not fall. The market outlook for CBD hemp biomass remains strong and hemp farming is likely to become even more profitable as CBD and industrial hemp products demand grows.
It is too early to answer this question as the year has just started, yet it will determine how the hemp market pricing will be in the next 12 months. To get an idea on how the year will be, we examine the following factors;
2018 Farm Bill
With the passing of the 2018 Farm Bill, it is expected that CBD products will be on high demand. However, it is crucial that we observe the rulemaking process and try and understand how long it
Will the 2018 farm bill affect hemp biomass prices>
takes for a system to adopt new rules and regulations. For instance, the California Department of Health illegalized the use of CBD as an additive in food products. More states are expected to come up with rules regulating the use of CBD and Hemp products. There are still many legal things
Offshore Hemp & CBD
Although this may not be a factor to worry about right now, in the near future, the import and export industry may significantly influence the hemp biomass market. For instance, China is establishing remediation and large extraction labs for pesticides, heavy metals, etc. Although Chinese and offshore hemp and CBD isolate have a bad reputation due to contamination, quality and fraud, this perception may change as the offshore CBD industry continues to grow. Offshore CBD and hemp are unlikely to be a determining factor to USA hemp biomass prices in 2019.
There you have it. The hemp industry is one ever-changing sector, and more changes are expected even as the industry matures. Studying the market trends is therefore very important as this will determine where you will be standing in the industry 12 months from now.
FURTHER READING
Contact IHF LLC
Email us here
Call us: 800-985-9587
