Are you tired of shopping your hemp crop all day and night just to get a premium price?
When buying hemp, purchasers are generally looking at paying around $3 to $4 per CBD percentage point. What this means is: if you have 100 pounds of hemp flower at 10% CBD then that would command a price of $30 to $40 per pound, which is $3-4 multiplied by 10 CBD percentage points per pound, or, $3,000 to $4,000 for the whole 100 pounds. One real-world example:
“Seleznov said the 2018 crop should produce about 10 percent CBD content, and should bring about $25 to $35 per pound. With a yield of about one pound per plant and up to 2,500 plants per acre, that’s around $60,000 per acre…” (Rice 2018).
So, if you’re looking to sell 100 pounds of 10% CBD hemp flower, you can reasonably expect $3,000-$4,000 for your crop. Or, $2,500-$3,500 if you were to go off of the example in the pull-quote above.
Now, that’s not bad…but it’s certainly not that good and you could do better.
For instance, say you’re looking to “split” that same 100 pounds of 10% CBD hemp flower with a hemp processor (such as Nemadji), then you’d be looking at splitting the price of an end product as opposed to taking peanuts for the initial sale of raw material.
Calculating the Math for Selling vs. Splitting:
Extraction Process – Take that 100 pounds and multiply it by 10% CBD and end up with 10 pounds of crude oil.
10 lbs is 4.5 kg, or, 4,500 grams @ $3.90-$4.50 crude market price equals $17,550-$20,250 for that same 100 lb 10% CBD hemp crop.
Post Processing – Take that 10 pounds of crude oil and refine it into 7.5 pounds of isolate/distillate (at a 20% yield loss).
7.5 lbs is 3.4 kg, or, 3,400 grams @ $7.50-$10.00 isolate market price equals $26,860-$32,300 for that same 100 lb 10% CBD hemp crop.
Return On Investment:
Selling 100 pounds of 10% CBD hemp flower to a processor will net you $3,000 to $4,000.
Splitting that same 100 lbs of 10% CBD hemp flower with Nemadji Processing will net you half of $17,550-$20,250 for crude oil ($8,775-$10,125) or half of $26,860-$32,300 for isolate ($13,430-$16,150).
The Real Question Is:
Would you rather make $3,000-$4,000 or $8,775-$13,430 for the same 100 lbs crop of 10% CBD hemp flower?
The extraction process requires several steps in order to turn your trim/flower into that final product of desirable oil. From grinding, to decarboxylating, to supercritical co2 extraction, to winterization, to dewaxing, to rotovaping and wipe film distillation are all parts of processing that you can financially benefit from without having to do ANY of the work.
Splitting your hemp crop with a hemp processor makes sound financial sense, and it’s a whole hell of a lot easier than shopping your crop at prices no one will pay! Crunch your numbers on our value calculator, yield calculator and then call 1-(715)-318-0026 to start processing today!
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.
Rice, Jeff. “Hemp can be lucrative, but there are drawbacks.” Journal-Advocate: 27 February 2018. Website: http://www.journal-advocate.com/sterling-local_news/ci_31699721/hemp-can-be-lucrative-but-there-are-drawbacks