The hemp industry is booming. In fact, the USDA estimates that total hemp industry sales will reach $104 million by 2022. That’s nearly a 4x increase from this year alone!
Yet, growing superior hemp is only half the battle. Finding a buyer for your crop is vital if you don’t want your hard work going to waste. That’s why we created this guide to pricing and selling hemp.
Do you want to get into the hemp farming industry? Then you need to know where to sell your harvest before you plant your first seed. Keep reading because this guide will help you do just that.
Before you ever sell your first hemp harvest, you have to know you’re growing good quality stuff. Here are the factors to consider when pricing your crop.
The primary consideration when it comes to pricing hemp is cannabinoid content. Buyers will pay more for hemp that’s rich in cannabinoids like CBD. The more CBD content per pound of biomass, the higher price you can command.
Another factor your buyers will consider is whether you hand-shucked your crops or used a combine. Hand-shucked hemp tends to have higher levels of CBD compared to combined hemp.
However, this may soon change as new hemp shucking technology emerges into the market.
Once you’ve determined how much your hemp biomass is worth, you need to find a buyer. As you’ll see next, you should’ve arranged the deal before harvest, if not before you planted your crop.
Below, we’ve listed the top five ways to sell hemp biomass in Colorado.
Ideally, you want to pre-sell a harvest before the hemp reaches full maturity. It’s even better if you can secure a contracted buyer before you even start your seedlings.
Why? Once you harvest your hemp biomass, you’ll have a relatively small window to turn it around. Most farmers grow hemp crops during the same season, too, which means you’ll face greater competition trying to find a buyer post-harvest.
Hemp futures contracts lock-in pricing with buyers before you ever plant your first seed. These contracts aren’t subject to market volatility. With futures contracts, you secure your price and terms upfront with no risk of the buyer backing out of the deal.
Colorado Breeders Depot is always looking for premium hemp biomass. We process and extract CBN hemp biomass to suit our choosy customers’ high standards. Keep us in mind next time you’re searching for a pre-sale buyer for your hemp crops.
Hemp farm startups often find luck selling through hemp brokers. These industry professionals come with a list of contacts to whom they can potentially sell your hemp.
After you harvest your crops, hemp brokers do the rest of the work. They find a buyer and negotiate a fair price. Because of their expertise, hemp brokers can often command a higher price than you could’ve on your own.
It’s also important to note that the industry isn’t free of predatory brokers. That’s why it’s so important to vet out your prospective hemp biomass broker before you sign the deal.
For example, you could ask the broker for references to check out other farmers’ reviews of their services. Any good broker should be able to provide at least one referral to a customer with a positive review.
More seasoned hemp farmers can often bypass the expensive broker middleman altogether and go straight to the end-user. This is what’s known as a direct-to-consumer business model.
With DTC hemp biomass sales, you aren’t just the farmer. You’re also the processor, extractor, marketer, and retailer all in one.
Selling DTC requires you to have a list of contacts you know will buy your crops. This method definitely requires more effort on your end. Yet, considering that you’re saving money throughout the process, you can maximize your profits.
One growing platform for DTC hemp sales is social media.
Profit-sharing is a business model where the buyer and the seller enter into a hemp farming partnership. These partnerships allow the buyer and the farmer to share the crop’s profits. In exchange, the buyer covers the cost of seeds, equipment, etc.
This eliminates startup costs almost entirely, which is why many newer hemp farmers utilize this model.
With hemp profit-sharing agreements, the buyer usually supplies the materials to grow the crops. The buyer is also the one who will ultimately sell the crop after harvest.
Farmers that enter into a hemp profit-sharing agreement get to focus on what they do best— growing high-quality hemp biomass.
Hemp biomass can command top dollar if it’s high in cannabinoids. Next time you have a good harvest, sell it via hemp brokers, direct-to-consumer, or Colorado Breeders Depot.
Are you looking for the best hemp seeds that will have your buyers scrambling for more? Colorado Breeders Depot is your one-stop-shop for the highest quality hemp seeds in the state. Browse our hemp seeds now and watch your crops turn to gold!