How can I sell my hemp crop?
It’s that time of year, and a very exciting time for farmers that have been growing a hemp crop with hopes of cashing in on the exploding demand for CBD oil:
The process of harvest will be nothing new to seasoned farmers. What comes next may be more of a challenge. It is common knowledge that the demand for CBD is outrunning the supply, which is likely why you decided to jump on the hemp bandwagon. But once you have your crop harvested and ready to go, how do you go about selling it, and maximizing the return on your investment?
There are multiple ways to sell your crop or have it processed for you. Here are a few of the most popular and easiest avenues to take.
Once you have your harvest collected, locate a reputable extraction company to process your plants into product you can sell yourself. Make sure to do your research on who you work with; with the popularity (and profitability) of the CBD industry on the rise, there are a plethora of businesses popping up and hoping to cash in. Learn more about how to find a reputable extraction partner here.
Pay for Extraction to Crude Oil
The core service that an extraction partner can provide to you is processing your hemp biomass into crude oil containing CBD. Once crude oil is extracted, it does start the timer on it’s shelf life, and will need to be distilled and before it is ready to be refined into a final desired form.
Pay for Extraction to a Marketable Product
To go a step further, you can work with your extraction provider to take the crude oil they extract for you to refine your product and make it shelf-stable. Winterization of crude hemp oil involves removing undesired elements (like fats and waxes) that were also extracted during processing. This is achieved by combining the crude oil with alcohol and then freezing it, thus allowing the undesired parts to be filtered out, and then removing the alcohol from the product by using heat, leaving a pure and clean finished product that is ready for consumption.
Sell the Crop Outright
Many processors will buy your crop from you outright, putting money in your pocket and taking the risks of product loss during processing off the table for you. It is important to have a hemp testing company come analyze your biomass before you start price negotiations with processors, as plants that will be able to produce more CBD during processing will go for a higher premium.
This is a very popular option that combines security and profitability. Split processing means that you will have an experienced processing business partner contract with you to extract oil from your biomass, without you paying them outright. Then, after the product is processed your partner returns a portion of the final product to you and retains a portion as their payment.
Kancanna wishes you a successful and profitable harvest this year! Feel free to reach out to us if you have any questions on how to sell and process your hemp, and we would be happy to offer our advice.