Are you a hemp cultivator harvesting your hemp crop this fall? Are you shucking and bucking your hemp plants to increase the overall value?
There are a few things you need to know in order to get a handsome return on your hemp investment. Before you consider selling it, or accepting solicitations from hemp brokers, you ought to know what buyers are looking for when purchasing from hemp farmers.
For instance, many hemp processors are looking to purchase “clean” hemp based off of the crop’s CBD percentage points. For example, say a processor pays between $3 to $4 per CBD percentage point:
So, if you have 1,000 pounds of hemp with a CBD percentage point content of 11%, then you’re looking at multiplying 11 by $3 or $4 which equals $33 or $44 per pound. With 1,000 pounds at $33 or $44 per pound you’re looking at receiving $33,000 to $44,000 for your raw hemp materials.
In the previous example, 1,000 pounds of 11% CBD hemp could go for between $33,000 and $44,000 wholesale, provided it passes analytical testing and sampling.
Reasons for Shucking and Bucking
So, reducing the weight of waste, such as sticks and stems, by cleaning your hemp after harvest affects the overall potency of your biomass:
“Cleaning is required to remove contaminants such as weed seeds, plant parts and insects and it should be conducted as soon as possible after harvest.” (Cool Bean 2018).
If you’re not “cleaning” your biomass, by shucking and bucking in order to remove the stalks and stems that do not contain high CBD percentages, then you’re diluting the overall CBD percentage point. The lower the CBD percentage point of your hemp crop, the lower your profits.
Not to mention, before anyone will buy your hemp they’ll want to sample it. While adding the mass of stalks, stems and fan leaves to increase raw material weight seems tempting, it will DECREASE your CBD percentage points and lead to less revenue.
How to Buy Hemp for Processing
- The sampling of hemp for analysis.
- The problem of sampling bias and how it can affect purchase price.
- The pitfalls and solutions for sampling containers.
Looking to calculate the value of this fall’s estimated hemp harvest? Check out our calculator in the article, “Broker, Purchase, Toll Process or Split: What’s the Best Option?” to estimate your hemp crops value.
We offer competitive toll processing prices and advantageous split agreements for those have already invested heavily in their hemp crops. Call 1-(715)-318-0026, or fill out a contact form, to start processing today!
Conley, Shawn P. et al. “Wisconsin Industrial Hemp Production: A basic FAQ guide for growing an old crop in a new era.” Cool Bean: 07 February 2018. Website: https://coolbean.info/2018/02/07/wisconsin-industrial-hemp-production-a-basic-faq-guide-for-growing-an-old-crop-in-a-new-era/
The numbers presented herein represent averages in costs, output, and results. The analysis is not a financial guarantee and shall not be used to create business plans, obtain funds, or make any kind of financial decision. There are inherent risks in any business. Some key risks for the three scenarios of brokering, splits and toll processing have to do with quality, transportation, yield, and labor. This guidance is intended to help the customer understand options and shall not be construed as an inducement for any kind of investment. Use the information presented here at your own risk.