Hemp cbd oil pricing for farmers

Hemp Depot has engineered an innovative, proprietary new process to create high volumes of feminized CBD seeds, the seeds that produce CBD-rich crops, at a cost to farmers that is 70 percent lower than current market prices for less productive seeds. The net result is an economically viable solution that allows farmers to boost production and maximize profit per acre. The announcement of the breakthrough in seed production and pricing comes on the heels of a record setting sales period for Hemp Depot. Rodosevich says is already on track for record earnings with the company reporting January sales exceeding all of the sales. This savings will make a huge difference in the bottom line.

CBD Hemp Biomass Price Trends 2019

The biomass market is heating up, with regard to frequency of transactions, as producers harvest fresh biomass and it enters the market. Prices of biomass across the three PanXchange benchmarks have continued to transact in a similar range as product is readily available throughout the country.

Prices have continued to see downward pressure due to the cyclical effects of the market. CBG biomass continues to trade on a per pound basis as supply is limited and concentrated in Oregon, with a few farms in the Southeast and Northeast producing viable product as well.

Mold continues to be a prevalent factor in biomass throughout the Midwest and the Southeast as many farmers relate problems to humidity and seed genetics not being optimized for different climates. New technologies are being optimized as drying facilities throughout the country are ramping up to full capacity, while varying results are surfacing about yields negatively impacted by mechanized harvesting. The spread between non-winterized crude and winterized crude continues to narrow as winterization capacity increases throughout the country.

On Oct. However, other industry-specific sources are predicting much larger crops as Vote Hemp assessed the market at , planted acres. As such, Vote Hemp projects between , and , acres of viable product. In most established commodity markets, various government entities aggregate crop estimates for the purpose of providing objective economic data. To incentivize farmers to participate in the surveys and gather the most accurate data, the government provides various benefits such as low interest loans and access to special reports that are only given to those who participate, among other beneficial programs.

Prior to the USDA interim rules, there are no formal programs in place in the hemp market. Therefore, without any of these incentives for hemp farmers, many of the hemp acres that were reported to the FSA came from farmers with diversified land usage who are required to report all types of crops grown to maintain the federal benefits.

Since many hemp farmers are solely producing hemp this year, the discrepancy between the FSA and Vote Hemp projections are understandable. This fact is further illustrated as you distill the data on a state-by-state acreage basis. In the FSA data, large producing states such as Oregon, Colorado, and Kentucky are severely understated compared to the industry consensus.

Per the FSA report, the three states planted 46, acres cumulatively, while Colorado alone is expected to nearly double the three state cumulative figure at approximately 80, acres planted. Just as many market participants are still figuring out best practices, the various government arms are doing the same with regards to tracking data in this rapidly changing industry.

Though the FSA Crop Acreage Report may be understated this year, the data is still useful towards establishing trends in the industry on a macroeconomic level. The industrial hemp applications are picking up momentum, but still represent a fraction of the market. Companies such as Patagonia have released their first line of hemp clothing. However, the price point is considerably higher than the traditional lines representing the amount of research and development that has to occur before hemp is seen as an economical substitute.

It is noteworthy that in the newly proposed USDA interim Final Rules, the reporting of hemp acreage planted will be a requirement for compliance, thus increasing the transparency of national supply outlook. Overall acres planted is not the best measurement for total supply in the market as yields widely vary across the board, but it is a useful metric that will become standardized as the market matures.

After almost a year since the Farm Bill was officially signed, the USDA has released its first draft of rules regarding industrial hemp. While the page document has a lot to digest, there are some very major developments that have the potential to change the landscape of the industry going forward. Arguably the most important topic is that the rules were distributed as a draft, for informational purposes.

In the coming weeks, a final draft will be published, followed by a 60 day commenting period will be opened before a final rule set will be published within two years. The Farm bill extension of the Farm Bill authority expires 12 months after the effective date of this rule. As for the rules themselves, the document includes details on where and how hemp can be grown, THC testing standards, and procedures on protocols for plants exceeding the THC limit.

First, the USDA defined its proposed procedures to ensure hemp is a national commodity. The USDA is essentially acting as the superior rule to the individual states, similar to how federal laws relate to state laws. With this rule set, the USDA will establish the baseline procedures and allow the individual states to create rules that can be more stringent but cannot supplant the higher authority. States that submit rules that are in compliance with the USDA will be approved and producers in those states will be subject to the individual state rulings.

It is important to note that states such as South Dakota and Idaho, with Governors that are adamantly against the hemp industry, the USDA will issue licenses directly to those producers who wish to enter the market.

The USDA goes into further detail, outlining that pre-harvest samples will need to be submitted within a time period of 15 days before harvest to prove that the crop indeed is in compliance with the USDA. Specifically, tests could be manipulated by sending samples in far earlier than when the plant is mature and the pre-harvest test is no longer accurate.

While the document is thorough, there are some topics that are not covered in the initial draft or have essentially been tabled for the time being. While the USDA rules do not mention smokable hemp, they do mention that at this time they will not undertake testing seeds for genetic profiles. The USDA states that there is not sufficient research on the topic, and the location of where the plant is grown can ultimately impact how the plant will perform.

On a similar note, the USDA mentions that import and export procedures will be addressed if there is significant interest as many firms look to exports as a way to expand the market, control costs, and capitalize on growing demand specifically in Southeast Asia and Europe.

In this section, the USDA solidifies the fact that the implementation of cannabinoids into food products falls under the purview of the FDA, specifically due to the use as a pharmaceutical ingredient. It is undeniable that the hemp market is transforming at an unprecedented pace.

New legislation is moving through Capitol Hill by the day, research is yielding improvements on processes and understanding the potential of the hemp plant, and companies continue to establish themselves as industry leaders. While the momentum on all these fronts is exciting, it is also prudent to take a step back and analyze the way in which the market is functioning to better understand trajectory in both the near and long term.

Current crop transactions are occurring in the spot market, closely mirroring other traditional agriculture commodities such as wheat, corn, and soybeans. On the other hand, tolling splits have become an increasingly prominent deal structure along the supply chain from pre-harvest services such as drying and harvesting to post-harvest extraction. Tolling splits in a vacuum are not a detriment to the industry as it allows for services to be exchanged without the need for additional working capital, however, the repeated occurrence of these deals over traditional cash-in-hand transactions highlight major trends that are shaping the industry going forward.

It is apparent that the industry has deployed most of the capital that was flowing into the industry after the Farm Bill into hard assets like facilities, research, and development, equipment, and supplies. This capital was put to good work as a significant amount of funds are needed to get an operation running in a timely manner, however, this has put a strain on the amount of working capital.

It is worth noting that the continued downward pressure on prices has impacted revenue models for those who anticipated the market to be higher than today, but initial investments are only part of the picture. Looking at the financial side of the industry, the frequency of multi-million dollar investments has slowed in a competitive market after reaching a high point in To further the point, access to traditional cash infusions such as revolving credit lines have been unattainable for many firms to this point.

From the perspective of the financial institutions, the hemp industry is somewhat of murky water as there are apparent conflicts between state and federal legislation and stigmas surrounding the hemp as it relates to marijuana. Further, it is inherently hard to assess risk when no firm has credit history. This is slowly changing as typically smaller and more agile financial institutions with an appetite to gain market share are taking a more in depth look at the opportunities in hemp.

In summary, the above trends have compounded to create a turbid situation where industrial hemp products are moving without the exchange of money, essentially pushing returns down the road. We have studied several agricultural markets around the globe at PanXchange and are proud to be in the US hemp market.

The volatility, dearth of working capital, and potential oversupply are all normal components of a nascent market. Nonetheless, we remain exceptionally bullish on the long-term potential for US hemp industry. The hemp industry has incredible potential, and it is important to not lose sight of this; if climbing Mt.

Everest was easy, we would not marvel at those who have been successful. RJ Hopp is the director of hemp markets at PanXchange. Earlier this week, the U. Department of Agriculture USDA posted its draft of interim regulations for the newly legal hemp industry.

Read up on the draft rules here. And provide your public comment here. The commenting period will close Dec.

As of Friday morning, the department had received 55 comments. These comments will help mold amendments to the rules as the department compiles its final draft.

The rules as written currently address land use, sampling and testing, disposal of non-compliant plants, inspection compliance, information sharing, certification resources and the intersection of USDA oversight and state regulations for hemp production. Testing methodologies currently meeting these requirements include those using gas or liquid chromatography with detection.

Of course, THC content cannot exceed 0. Consequently, the material must be collected for destruction by a person authorized under the CSA to handle marijuana, such as a DEA-registered reverse distributor, or a duly authorized Federal, State, or local law enforcement officer. KALY has a U. Patent for Cannabis Extraction and provides hemp cultivators with harvesting and extraction services. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of , as amended, and Section 21E of the Securities Exchange Act of , as amended, and as such, may involve risks and uncertainties.

These forward looking statements relate to, amongst other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market.

The company's actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors. Even with the Farm Bill legalizing hemp as a crop, the lack of federal guardrails has dragged several prohibition-era problems into the present.

Licensed hemp businesses continue to have trouble holding down relationships with banks and insurance providers. A snafu in Maine last week led to a strongly worded letter from the governor, who urged the approval of these long-awaited rules. The USDA published its draft on Tuesday morning, and already industry stakeholders and observers are looking ahead to a new era in the business. A major theme in the release of these rules is standardization. Now, the newly legal U.

While the Farm Bill legalized hemp cultivation, processing, transport and sales on a federal level, the bill also allowed states to develop their own regulations for this new industry. Some states elected to carry on their Farm Bill-era industrial hemp pilot program rules; others set up guidelines that were far more restrictive than what even Congress had envisioned.

The goal was to have some sort of clarity from the federal government in time for the growing season. Now that the document is approved and published, these rules provide not just a safe harbor for financial institutions, but, one can imagine, helpful rules on pesticide application, cultivar selection, USDA insurance policies, cannabinoid testing protocol and other vital aspects of the business.

States that choose not to set up their own rules for the industry may defer to the USDA. These rules will be in place for one year, at which point amendments will be made as needed. In turn, multi-state CBD manufacturers, distributors and retailers have been forced to comply with a hodge-podge of mismatched state laws which unintentionally have created minefields for operators and no quality standards for consumers.

As companies expand across state lines, those various interpretations of the law have been shown hamstring growth in some cases. Passage of the USDA regulations cannot come soon enough. As for regulations from the U. This story has been edited since it was originally published Oct.

Understanding the correlation between water quality and food safety, Dramm will use KETOS water monitoring solutions to provide growers with mission-critical water data to help enhance crop yield, quality and taste.

KETOS empowers farmers with intelligence on crop tolerance by delivering valuable insights on water quality fluctuations in deficiency and toxicity.

When sales of CBD oil did occur, says the report, the price in January was 25% below December's. Even Republican Sen. Mitch McConnell was. THC DISCLAIMER: Products on this site contain no delta-9 THC or products on this site contain a value of % or less delta-9 THC. FDA DISCLAIMER: The.

Understanding the biomass pricing trends is an essential step towards establishing a successful hemp business. You can learn more about cbd, flower, fibre and industrial hemp biomass on this page. Just like in any other industry, hemp farmers and processors must work together in order to establish a fair market value for hemp products.

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Photo taken Feb. Riley Esser, a residential plumber and hobby farmer from Perham, Minn.

December 2019 Hemp Market Update: PanXchange Benchmark Pricing

The biomass market is heating up, with regard to frequency of transactions, as producers harvest fresh biomass and it enters the market. Prices of biomass across the three PanXchange benchmarks have continued to transact in a similar range as product is readily available throughout the country. Prices have continued to see downward pressure due to the cyclical effects of the market. CBG biomass continues to trade on a per pound basis as supply is limited and concentrated in Oregon, with a few farms in the Southeast and Northeast producing viable product as well. Mold continues to be a prevalent factor in biomass throughout the Midwest and the Southeast as many farmers relate problems to humidity and seed genetics not being optimized for different climates. New technologies are being optimized as drying facilities throughout the country are ramping up to full capacity, while varying results are surfacing about yields negatively impacted by mechanized harvesting.

October 2019 Hemp Market Update: PanXchange Benchmark Pricing

Biomass markets continue to bifurcate between two markets: 1 the market transacting at fair market values dictated by supply and demand; 2 a market rife with desperate sellers and opportunist buyers. Because of this fragmentation, recent transaction prices vary widely. Unlike more mature commodity markets, behavior in the hemp market remains erratic, wherein a subtle gap in quality fragments the market even further. Biomass and smokable flower are particularly vulnerable. Quality concerns remain a pertinent topic, especially with biomass as industry participants are becoming more concerned with contaminants such as mold and heavy metals, as well as the impending USDA rules that were released a month ago. Market movement for winterized and non-winterized crude is extremely slow, which is an effect of the tolling splits, as discussed in previous PanXchange reports. Farmers who are removed from the refined product ecosystem, are now in possession of crude oil, often without the network or resources to locate buyers. Therefore, these farmers are willing to let the crude go for pennies on the dollar, driving prices down for the entire market in this product category. Full spectrum is trading at a significant discount to broad spectrum, with the major cost difference the THC remediation process.

Our mission is to provide our customers with insight into the U. Hemp Spot Price Index Report Subscriptions are for a month term that can be paid in 12 monthly payments or 1 annual payment.

Data is king, but in the quickly growing, and now legal, hemp industry, it can be hard to come by. Establishing a hemp biomass wholesale benchmark has been near impossible in the past. While we would prefer to examine only hemp biomass , the data for Q4 of is a bit limited. To assist, we will look at the hemp industry as a whole for part of our analysis.

Hemp Biomass Prices 2019: A Look at Q1 Sales Data

The first question many hemp farmers and processors have is how to establish a fair market price for hemp biomass. This challenge exists because of the inherent nature of the industry. We need to better understand the relationship between supply and demand in order to determine a fair market price. Right now, the biggest question is whether there is enough biomass to supply hemp processors at full capacity. The answer will impact current and future pricing of hemp biomass , but this is a complicated subject due to the lack of traceability in the Hemp industry. Our industry lacks baseline data such as total biomass produced and total sales of CBD products to end consumers. In addition, the Farm Bill will have a tremendous impact on demand. This price is being influenced by a few factors. The first factor is that early flowering varieties of hemp are harvested. This eases the pressures on processors who need to procure biomass supply. To me, this is an early warning sign that demand from processors will not keep up with the supply of hemp.

Hemp Spot Price Index

Advertise Follow Us. With most farmers in the U. Current estimates show the U. Derivative prices continue to drop while many farms are still holding strong on price, which will likely make the crash swift when it happens. According to an annual survey from VoteHemp , the hemp growing season saw considerable growth compared to A total of 16, grower licenses were issued for the planting season compared to 3, issued in , amounting to , available licensed acres for hemp cultivation this year. The growing season saw more licensed acres and state licenses issued than any year previous. Click to enlarge. VoteHemp forecasts far more conservative numbers for planted and harvested acres, however, owing to both a lack of access to resources and a general lack of experience in the industry. The late planting season caused by rough weather patterns earlier this year may also have contributed.