Hemp biomass brokers add an essential element to the hemp buying process. They are an intermediary between hemp farmers and buyers, processors, and vendors to ensure that everyone gets exactly what they deserve and expect from the hemp buying process. For a small commission (usually around 10 percent but this varies), hemp brokers bring their hemp market expertise to the table to ensure no one plays a blind hand.
What Do Hemp Biomass Brokers Do?
Hemp brokers combine their vast network of connections with their deep understanding of market trends to connect buyers and sellers with the most qualified leads for their terms. This process gives farmers more time to tend to crops and buyers more time to process their supply. Thus, thus hemp brokers help free up valuable time and increase potential profit margins for everyone involved. They facilitate the connection, draw up the paperwork (usually), and ensure that deals close on time and as expected.
The Hemp Buying Process
There are three primary types of paperwork involved in the hemp buying process. The first set of paperwork, a non-disclosure agreement, is of vital importance to the broker as it ensures that the buyer and seller maintain their working agreement with the broker. Essentially, this ensures they will not bypass him or her to strike a deal outside of the broker’s realm. The Non-disclosure/non-circumvention agreement is the first piece of paper parties will sign and necessary for any further brokerage discussions to occur.
The next set of paperwork is a letter of intent. This letter is a non-binding agreement that outlines the basic terms of the deal. Standard hemp buying terms include a pride, a description of the expected hemp biomass, and the names of all involved parties. Though it is not legally binding, the letter of intent should display good faith measures to help ease any doubt between parties.
Finally, and perhaps most importantly, is the full hemp-buying contract. This contract includes many important details like delivery, price, payment type, payment timing, dispute resolution measures, and more.
Though some brokers do not include all three forms of paperwork, they are all valuable and worth considering regardless of the hemp biomass broker’s stance. The paperwork helps protect the large sums of money involved in the transaction and gives the broker leverage in a sometimes volatile hemp biomass market. Hemp biomass brokers that do not employ the use of these three forms may not have the experience or work ethic necessary for a smooth hemp buying process.
Separating the Good (And the Not-So-Good) From the Bad
Hemp Biomass Brokers are not all created equal. Some that are new to the game may be excellent salespeople with a growing network of connections, but they lack in-depth market knowledge and a solid infrastructure to help them scale their business. These brokers tend to be in the game for a quick buck with little consideration for future endeavors.
Experienced hemp biomass brokers, on the other hand, add much more value than the ending transaction. They have an expansive network and breadth of industry knowledge. As such, they will take a holistic approach to the entire process, including both consulting and transaction agreements. They are readily available to field questions and concerns regarding the hemp buying process. Furthermore, they take the time to ensure every interaction is of great value to all involved parties. Experienced brokers tend to charge a slightly higher commission. However, the value of their services more than makes up for it.
Then there are the bad players. They are brokers who ignore product quality and basic transaction terms as they grapple for a quick buck. These brokers tend to have a weak network of industry peers. Bad hemp brokers often lag on returned phone calls or propose deals that seem too good to be true. If your hemp biomass broker is non-responsive, cut your loses and find a better broker.
Final Thoughts About Hemp Biomass Brokers
Hemp farmers have enough to worry about. By employing the help of hemp biomass brokers, they can easily sell their harvest for top market value.
To learn more about hemp farming, contact our team of CBD hemp experts. We’d love to share some tips about increasing the profitability of your hemp farm.