Finding hemp biomass buyers is something to consider long before you plant your first crop.
Following the 2018 hemp bill, American farmers are jumping on the hemp bandwagon, hoping to cash some bucks. While it is true that hemp is a multi-billion sector, not everyone in the industry will succeed, and here is why:
Like any other business or undertaking, the hemp industry requires proper preparedness, especially when it comes to getting buyers. This is because, although the demand for hemp products is very high, the supply is equally as high. If you wait until the last minute to start looking for hemp biomass buyers, you might end up selling your products at a loss. After all, the buyers know there is not much time to waste to look for hemp buyers after harvest.
Remember, after harvesting a hemp crop, there is minimal time to waste processing and distributing it. Hence, you won’t have a lot of bargaining power late in the season. In this post, we will discuss how to find hemp biomass buyers who will reward you handsomely for your efforts.
Determining the Price of Hemp Biomass
Before you even consider looking for a buyer, you must know how to price your hemp biomass. How much to sell per pound?
The following factors will determine how much you can ask your products:
Quality of Hemp Biomass
Of course, the quality of your biomass will come in handy when determining the price.
If you are selling to CBD extractors, for instance, you must produce high-quality CBD-rich biomass. Likewise, reputable extractors will require official hemp crop COAs to understand the levels of CBD and other cannabinoids that are in your hemp.
It is, therefore, crucial that you understand the importance of high-quality CBD-rich hemp to avoid being under-charged. Hemp consulting services can help determine the best way to go about this.
Social Media Engagement
It doesn’t matter how old-fashioned you feel or wants to remain; if you’re going to get a reasonable price for your hemp biomass, you need to increase your social media presence.
Some social media platforms such as Facebook, LinkedIn, and even Instagram offer unique ways to connect with potential hemp biomass buyers.
One of the best things about social media is that it is not geographically limited. Also, by engaging in communities and groups that deal with hemp, you can better understand what is happening in the industry, including current hemp biomass rates.
CBD Hemp Farming Futures Contracts
Another way to ensure that you always have a hemp biomass buyer is by engaging in futures contracts. To be clear, CBD hemp farming futures are essentially contracts between sellers and buyers before the crop has been grown or is ready for harvest.
Futures Contracts benefit both the buyer and the seller; the buyer obtains the hemp beforehand, and the farmer does not have to risk a loss by looking for last-minute buyers. Indeed, futures contracts give you the confidence necessary to focus on your farming by ensuring a ready market come harvest.
Such an arrangement also protects you from the unpredictable hemp market. However, you must go for a company that has a better understanding of hemp futures. Engaging the services of a proper legal team can also help hold both parties accountable.
How to Find Hemp Biomass Buyers
Now that you have an idea of how to price your products, how do you get that ideal hemp biomass buyer? In this section, we will highlight some of the most common hemp selling options.
As a hemp farmer or supplier, your goal is to make sales as soon as possible. There are two ways of going about this: go to the direct buyer or use a broker to negotiate or sell the products for you.
Although it’s tempting to deal with intermediaries or brokers, it is crucial to note that this can make it hard for you to access the cash since most of these brokers don’t have immediate access to money.
Additionally, bear in mind that by engaging a broker, you are essentially ‘paying’ them to sell the product for you. Hence, your profit margins will be lower when using a broker to sell hemp biomass.
Another way to find hemp biomass buyers is through market places which allow you to showcase your hemp to thousands of potential buyers. Marketplaces often offer branded profiles, which includes the key information that most buyers seek.
When looking for marketplaces, research the functionality and offerings of each platform and thoroughly analyze their terms and conditions before signing any contracts.
When dealing with a broker, you might have to sign and pay for some non-circumvention and non-disclosure agreements. These agreements prevent you from dealing directly with the buyer and cutting the middleman out of the deal.
If you choose to use a broker, conduct due diligence to ensure that you are dealing with an honest, experienced, and well-connected person, a reputable broker will have many positive reviews on both their website and social media accounts.
There are many ways to find hemp biomass buyers. Though brokers can be helpful, we suggest securing direct buyers even before planting the first hemp seed. This will give you ample time to negotiate for a good/acceptable deal for both parties.
Those new to hemp farming often consult experienced hemp farming companies for everything related to hemp farming, selling, and so on. Conversely, a hemp consultation expert can offer guidance without skimming anything off the top of your profits.
Fortuna promises to provide you with all the necessary hemp farming resources. Call us today for premium hemp seed genetics, female seed starts, and expert hemp cultivation advice.