Growing CBD Seed In Oregon: How to Sell Hemp Biomass

As more and more farmers join the cannabis industry in Oregon, many are interested in getting into the lucrative CBD industry. Now that the 2020 growing season has come to an end, it’s time for farmers to find buyers to sell their hemp biomass too. While it is always recommended to presell your harvest or have buyers lined up beforehand, farmers that haven’t had the opportunity to do this need to get serious about selling their biomass. Unlike other cash crops, hemp can’t be stored in silos after harvest. For farmers growing CBD seed, here are our tips for selling your hemp biomass and getting the best profit return.

Hemp Biomass Review

Before we get started, it’s important to define the term hemp biomass. In the hemp world, this term can refer to two completely different things which can lead to a lot of confusion. Hemp biomass can either refer to the flowers or buds of the plant which contain the most significant cannabinoid and terpene content or it can refer to all other parts of the plant except the flowers. When discussing hemp biomass in this article, we’re using it to describe specifically the flowers or buds used for CBD production.

How to Determine the Price of Your Hemp Biomass

We always recommend doing your own local market research before setting a price for your hemp biomass. While there are various factors that will impact the value of your biomass, the biggest factor is the amount of CBD it contains. For farmers that grow hemp with low concentrations of CBD, you won’t be able to get the most value per pound. The more CBD content you have, the higher the price you can achieve. Investing in the right CBD seed is crucial– you’ll need to find high-quality genetics that has high CBD and low THC content.

Hemp Biomass Selling Options for Oregon Farmers

• Pre-sell your harvest: Having a secure contract in place can provide the benefit of stability before you even plant your first seed. Another advantage of finding buyers early is that you can really take the time to research buyers, negotiate the right pricing, and have adequate time to review any contracts before agreeing. If you don’t pre-sell your hemp biomass, you’ll run into short time constraints and competition with other farmers looking to sell. Always make sure you understand your contract and what your hemp needs to fulfill in order to stay compliant.
• Work with a hemp broker: One of the easiest options is finding a hemp broker. The right hemp broker will have significant experience, connections in the industry, and will be highly knowledgeable about the market. Working with a licensed hemp broker is great for first-time farmers with limited to no connections. This professional works as a middle man and takes a commission from your sale. Commissions usually average around 10% but can be much higher. Always make sure to find a reputable broker in order to minimize the risks of impacting your profits.
• Sell your biomass directly to customers: For farmers that do have connections in the industry and would like to cut out the middle man, selling your biomass directly to customers is another great option. While this will require more work on your end, you’ll save on commissions and enjoy a bigger profit return. Another thing to be aware of is that some wholesalers and buyers are only willing to work with experienced hemp farmers with a provable track record.
• Look for a profit-sharing agreement: Hemp cultivation requires initial investments whether you’re starting completely fresh or transitioning from another crop. These expenses may not be viable for certain individuals, making a profit-sharing agreement ideal. This agreement works by having the buyer cover all upfront costs then recouping those expenses after harvest. This is also a good choice for farmers that would like to expand their operations but don’t have the money to execute at this quicker pace.
• Hemp future contracts: There are always risks when it comes to farming. Hemp future contracts offer a way to eliminate these risks. These contracts are signed before CBD seed is planted and determines the price per pound in which the buyer agrees to pay. The downside of future contracts is that the agreed amount price is often below what you could get in an open market, but the tradeoff for stability may also be a benefit. Always read contracts thoroughly before signing.
• Other selling options: Get creative and brainstorm other ways of finding potential buyers. From online marketplaces to hemp tradeshows, there are many opportunities out there.

Work With Oregon’s Leading CBD Seed Company

CBD Seed Co. is honored to be the leading CBD seed company serving the state of Oregon. We’re always happy to provide the support you need for finding hemp biomass buyers. We have a longstanding history within our industry and have an extensive network of connections. Our incredible hemp farmers are always available to speak with you regarding any questions you may have. For more information regarding tips for finding hemp biomass buyers, please contact us!