There are lots of big talkers, plenty of unscrupulous players and many ways for it go all wrong when it comes to selling your industrial hemp biomass.
The best prices will go for top-quality, high CBD percentage biomass. But that doesn’t happen by accident, it comes via good farming practices and a well-thought-out plan.
Did you start with certified hemp seed? Did you follow a plan for proper planting, crop nutrition, irrigation and weed control? Did you test throughout the growing cycle for THC and CBD percentage and have the records to show that? Do you have an adequate harvest and an appropriate biomass drying procedure?
Establishing that you can be trusted to grow a good crop because you know what you are doing, will attract, in return, a trustworthy deal.
And never forget, you don’t have a crop until it’s ALL the way finished. As the saying goes “mother nature bats last.”
With hemp legalization as the current national ‘gold rush’, untrustworthy characters have come out of the woodwork. Those people won’t last too long in the industry, but they can cause serious damage – potentially fatal – to farmers.
Production contracts may SEEM like a good idea. After all, it’s pretty scary not knowing who will be buying your product at the end of the season.
If you’re a big operation, with several year’s hemp growing experience, contacts and a reputation already established, that’s one thing. You come to the negotiating table with the power of your expertise and production size.
But for small and medium-size growers new to the hemp game, production contracts typically end up giving up all the control to the buyer (or broker) with no recourse for you.
Does your contract prevent them from simply walking away come harvest time if they find a cheaper deal somewhere else? Do they specify a certain percentage CBD? What if you come slightly under that? Does that give them grounds to completely renegotiate the amount paid out per percentage point? If they simply ‘disappear’ when it comes time cut your check, will you have any financial recourse?
If you aren’t big enough to afford the legal team to review the contract before you sign it – and definitely the legal fees and lost sale if the deal goes south at the end of the season – think long and hard before signing any contracts.
There were horror stories out of the 2018 hemp crop cycle with farms that sent off a beautiful crop to a processor and then never got an ounce of oil back or the promised check. Many farmers are used to working “on a hand-shake deal.” The hemp industry, at least at this stage of the game, is not the place to be doing that.
Be very wary of a buyer that doesn’t have the cash in hand to pay you when you give them control of your crop. Or a broker that tries to talk you into such a deal. They could easily be doing a complicated “rob Peter to pay Paul” scheme and you don’t want to end up as Peter.
Not only that, what if the transportation truck crashes (or gets seized)? Or they put your beautiful biomass into a leaky warehouse and next thing you know it’s a moldy mess and they refuse to pay?
It’s easy to be tempted by higher percentage points for a ‘pay later’ deal but, especially in how volatile the industry is currently, cash in hand – cashier’s check works just fine – is BY FAR the safer way to go.
HempLogic™ has developed a biomass testing and tracking program to facilitate the sale of your CBD Biomass. Contact us to find more about our program parameters and how we can help you find peace of mind in fair and honest results.