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As a hemp farmer, the goal is to make profits as soon as possible after your industrial hemp harvest. To get the most profitable return, you’ll need to know the market value and quality of your CBD industrial hemp biomass. You can go directly to a hemp farming company like IHF LLC, a CBD processing and extraction company or a broker to help determine or negotiate the price for you. It is always best to deal with an experienced company that knows the value and can give you a deposit as soon as possible to secure the transaction.
Dealing with brokers or middlemen can complicate this process as they don’t always have immediate access to the funds. Brokers can also give you the runaround and make false promises to buy or sell at a certain price or quantity – leaving you frustrated at the end of the day. Dealing directly with a buyer with “cash-in-hand” is the smartest way to do business. Direct buyers can also offer more flexible deals and negotiation as well as offer future contracts and field profit-sharing deals where they supply the clones and seeds and split the harvest.
The price per lb. you will get for your hemp biomass will depend on a variety of factors. The difference between CBD- rich biomass and poor quality biomass plays a crucial role in negotiating the price. If sold to an extractor, they will want to know the analytics on the testing. This will determine how much CBD they can extract from the crop. Obviously, biomass that will produce more CBD per lb. is more valuable than biomass that is weak in CBD. A hemp farming and extracting company will know the value of this and will be able to negotiate the best price. It is important to contact one of these companies who is experienced in testing if you are unsure how it works.
This is another factor that will determine the price. Hand-shucked biomass produces 5% more CBD vs combined biomass. Therefore, it also goes for a higher premium. If you sell hand-shucked biomass it will have benefits to your bottom line. Until someone invents a perfected combine, hand-shucked will always be the way to boost the price of your crop.
Hemp farmers come from all walks of life and ages. Many farmers do not engage in social media to sell biomass and make connections in the hemp farming industry. This is an outdated principal to discard in years forward if you want to expand your empire. Certain social media networks such as Instagram are great ways to connect with processing and extraction companies and direct hemp buyers. If you are a farmer looking to expand your horizons, expanding in this space could give you the ability to get better buyers or make connections, however, the same rules apply, brokers who offer more than they can produce are often engaged on these platforms as well. This is why it is important to know the difference between a direct industrial hemp buyer and a middleman.
Another option to protect your investment is to engage in hemp futures contracts. Futures contracts will negotiate the price and terms of the industrial hemp harvest with another party before the field is harvested or planted. This is a great way to secure a price and terms which can make sense to both parties. Futures contracts will also shelter you against hemp market volatility and give you peace of mind. It is important to deal with a company who knows hemp futures and has a proper legal team to ensure protection on both sides. You can contact IHF LLC if you are interested in learning more about hemp futures and how they can benefit you.
Hemp farming profit sharing is another excellent option for a start-up hemp farmer with limited cash flow, or for a farmer looking to expand quickly. With the enormous cost for industrial hemp seeds and clones, this could be the best option to expand your industrial hemp biomass crop. IHF LLC is an established corporation that has the cash flow reserves and stock to issue such contracts.
With hemp field profit sharing, the farmer and buyer enter a contract where the buyer supply’s the materials and cost to plant a field and then sells the remaining harvest on a split percentage. This can have extraordinary benefits to lower or eliminate start-up costs and secure profits. When going this route, it is important to deal with a company who can deliver on this promise. Going with a company who grows their own industrial hemp and who has existing large contracts is important. IHF LLC is involved in both the farming, selling and producing of CBD. Please contact us to learn more.
The price you will receive for your hemp farm harvest will depend on a variety of factors. The main factor is the quality of the CBD hemp biomass produced and if it is hand-shucked or combined. The other factor is who you are dealing with. There are a lot of sharks and fake brokers in the hemp industry that will either try to take advantage of your lack of knowledge or low ball your price. Skipping the middleman is the best bet to avoid this. Unfortunately determining a broker from a direct buyer can be tough for the untrained eye of a new hemp farmer.
At IHF, we offer full touring of our facility in Colorado Springs and welcome all of our clients to come to visit on our cost. Please reach out to us if you are hemp farmer looking to sell your crop or learn more about other hemp farming programs.
Click here to email IHF | Call IHF Sales: 800-985-9587