The 5 Best Options for Growers to Sell Hemp
A frequently overlooked question in the beginning stages of hemp farming is often “How am I going to sell the hemp that I grow?” One of the best ways for hemp farmers and growers to maximize profits is to have a well planned out exit strategy on how they are going to turn their plants into cash.
Direct Purchase To Customers – As most often the goal of planting hemp is to make the most amount of money possible. For that the first assumption is that the seller will just sell the product directly to the ample number buys seeking to purchase quality hemp. Those interested in selling direct to the consumer can use resources such as The Leaf Exchange which is similar to Craigslist allowing sellers to list their product and deal directly with interested purchasers.
Brokers – Just like in real estate and stocks, your broker can be the largest asset a hemp grower or farmer has in selling their home. Just as 94% of real estate transactions still involve a broker, hemp seller will find experienced and qualified brokers are a great option as they can deliver customers who are willing to purchase. If you are interested in discussing brokerage options please reach out to us here at New Leaf Brokers.
Toll Processing: Toll processing is when a cultivator hires a processor to process their crop at a set price for any number of services, whether it is to obtain crude oil, winterized CBD oil, CBD distillate, CBD isolate, or full spectrum oils. Toll processing is a great option for hemp growers seeking to become involved at different levels of the supply chain, whether cultivating hemp or obtaining a final product for retail.
Split with Processor: Split with processors is when a processor, and cultivator, split the oil/end product that comes from a crop. This is a great option for cultivators looking to obtain more profit than the option of toll processing. 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
Self-Process and Direct Sale Product: This involves an extensive amount of work and investment. However, if a cultivator is looking to maximize profits, has a substantial amount of cash to invest and looking to be in the hemp industry for the long-haul this might be the best long term strategy. This involves having the ability to fully process the plant down to a consumer salable product and then also have the ability to market, sell and distribute the end user (general public CBD consumer) in the form of oils, lotions, potions, edibles, etc.