Deciding you’d like to grow hemp is only the first decision of many involved in successful hemp farming. Growing hemp for profit means more than cultivation. You also have to decide what to do with the hemp after harvest.
Your decision at this stage will help you maximize profits, but do you broker, process or split?
Broker your product
Whether trying to sell biomass or a more refined extract, working with a broker can be beneficial if you haven’t yet established strong connections within the hemp industry. They can help you get your product to the right buyer, at the best price.
The issue is in knowing at what stage to sell your hemp for the highest payout. Is biomass going to net a solid profit? Will you have to spend the money processing your hemp before you can even connect with a broker? Many brokers can advise you on this decision, but then you have to feel certain that the broker knows their stuff. Those new to the job may talk a big game without delivering.
If you establish a positive relationship with a broker, it’s usually a cost-effective route to go. They most often work on commission. That means they won’t get paid until you make a sale, and then they’ll take a percentage from there. You won’t have up-front costs to deal with other than what you pay to prep the hemp for market.
Process on your own
Deciding to manage everything on your own when it comes to your hemp crop is a demanding choice. It also means you’re handling each service you’ll need in an a la carte fashion. Maybe you buy your own harvesting equipment and transport your biomass yourself. That can help you save money in the long run, but what happens next? Are you drying the hemp at one facility then transporting it elsewhere for extraction? Costs can quickly add up.
In theory, you’re also planting too much to manage processing on your own in its entirety. You’ll need to rely on industrial-sized equipment to get the job done. This means you’re working with a processor regardless of whether you access their services piecemeal or partner with them.
Processing your hemp crop yourself also means it’s up to you to shop it around. You have to contact individual buyers, after tracking them down. You have to compare prices, and try to find the best deal before it expires. It’s a lot of work on top of the cost you’ve spent converting your hemp biomass into a more lucrative extract. If your goal is growing hemp for profit, processing on your own is not the way to go.
Split with a processor
This scenario is actually best for some very important reasons. First, splitting with a processor means you don’t have to handle the minutiae of processing yourself. A processor not only has all the right equipment to dry, process, and extract, but they also typically have connections to manufacturers, which makes it easier to sell your product at the end. Splitting also enables you to get all the services you need for one price. You won’t have to pay a la carte to get your hemp ready to sell.
It also builds a stronger relationship between who grows the hemp and who ensures a quality product results at the end. Splitting builds trust and can lead to even more support for the farmer, from a trusted source.
Make Arbor Vita8 your partner in hemp
Regardless of broker, process, or split, With extensive experience in the hemp industry, Arbor Vita8 knows how to be a good partner to farmers. What matters most to us is your success. We offer high-quality processing equipment in a state-of-the-art facility, giving you superior service at every step. From harvest support to processing to the ability to sell your product without stress, Arbor Vita8 is a stellar partner in hemp. Contact us today to learn more.