A Seller’s Guide to Hemp Biomass

sellers guide to hemp biomass

Ever since the passing of the 2018 Farm Bill lifted countless restrictions on the buying and selling of hemp products, hemp biomass is being used at a record pace. Between the manufacturing of CBD distillate and isolate, and the market for hemp products, farmers can’t grow it fast enough. There’s a massive market for hemp biomass as more and more buyers explore entering the industry, putting sellers like you at an advantage.

As a hemp farmer, you want to make a profit as quickly as possible after your harvest. To get the highest payoff from your harvest, you need to be able to navigate the market value in the hemp and CBD industry. You’ll also need to know the quality of your industrial hemp biomass and its exact CBD content.

In this article, we’ll go over everything you need to know about selling your hemp biomass, and positioning your farm as a trusted seller in your industyr.

Working with a third-party vs. finding your own buyer

Your first instinct may be to try and find a buyer yourself. While a lot of farms go this route and manager the process themselves, you also have the option to work directly with a CBD extraction company. A third party company whose job it is to pair you with a buyer will be able to negotiate your terms and find someone who is looking for what you’re selling. Working with people who have experience in this area can be one of the quickest ways to sell your hemp biomass.

However, working with a middle man can also complicate the process. Depending on the broker’s terms, you might get direct access to the buyer themselves. So you may never know who exactly is buying your biomass. You will also have to wait a little bit longer to receive your cash when the buyer is going through the third party and not paying you directly. Third party services can also be costly and will eat into the profits from your harvest. But if you want to take a hands-off approach and save time looking for a buyer and organizing the deal yourself, a third party is a great choice.

How to price hemp biomass

The way you price your biomass is dependant on a few different factors. The quality of your hemp biomass will make a big difference in how much a buyer pays for your product. These days, most people looking to buy hemp biomass are doing so to make CBD oil. So if you’re selling high-quality, CBD-rich biomass, then you’ll have the upper hand when negotiating. Hemp biomass with high CBD content is in huge demand, making it a seller’s market.

Another factor that goes into determining the price is whether or not your hemp has been hand-shucked. Hand-shucked biomass has 5% more CBD content than biomass shucked using other methods or techniques. You will be able to charge more if you’re selling completely hand-shucked hemp biomass. If you don’t hand-shuck your biomass and want a way to boost your prices, then consider changing your shucking method.

When negotiating price, be prepared to present your extraction information as well as a product analysis and results from your third party lab tests. This is another time when working with a company that specializes in these types of negotiations will come in handy. They will be able to tell you exactly how much you can charge in the current market and give you an idea of how your quality and pricing compare to others in the industry.

The legalities of selling hemp biomass

Since the passing of the 2018 Farm Bill, hemp biomass is fully legal to grow, process, and sell across the United States. The bill also made it legal to transport hemp matter across state lines, as long as the hemp was grown according to federal regulations.

Make sure that your biomass is tested by a third-party lab to confirm its contents so that you can set the best price for the quality of your product and your product isn’t misrepresented to consumers. In addition to hemp and CBD oil, hemp biomass is being used to manufacture different types of supplements and medicines. Having accurate and up to date lab test results will help manufacturers know how best they can use your hemp.

Market your farm as a seller of hemp biomass

These days, hemp farmers don’t fit into the typical mold of what you think a farmer should be. People are becoming farmers at different stages of life. As the hemp and CBD industries continue to grow, it’s more important than ever to make connections and network with other farmers, buyers and other key players in your industry. Some farmers are even taking to social media to connect with CBD brands and brokers and make connections that build trust among them and their potential buyers.

Another common option that some hemp farmers are turning to is forming profit-sharing agreements. For start-up hemp farmers, farmers with little or no cash up front, or farmers looking to grow their business quickly, profit sharing can save you time and help you get returns on your investment more quickly.

In hemp field profit-sharing agreements, the buyer and farmer enter in a contract. The buyer usually agrees to supply cash flow for materials and equipment to plant and maintain a field. Then the farmer manages the grow process, and then the buyer sells the remaining harvest on a shared percentage with the farmer. This works well if you have two parties involved who are working within their specific skill sets.

If you’re a hemp biomass seller, remember that you’re products are in demand and highly sought after. Take the due diligence to produce the best biomass, use the best shucking methods, and work with the right partners to get the best price possible for your hemp biomass.

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