Why “Splitting” Your Hemp Crop Is More Lucrative Than Selling It
Are you tired of shopping your hemp crop all day and night just to get a premium price? Splitting your hemp crop with a hemp processor makes sound financial sense, and it’s a whole lot easier than shopping your crop at prices no one will pay! Read below for more information, then crunch your numbers on our value calculator , yield calculator .
Splitting Your Hemp Crop
When buying hemp, purchasers are generally looking at paying around $3 to $4 per CBD percentage point. What this means is: if you have 100 pounds of hemp flower at 10% CBD then that would command a price of $30 to $40 per pound, which is $3-4 multiplied by 10 CBD percentage points per pound, or, $3,000 to $4,000 for the whole 100 pounds. One real-world example:
“Seleznov said the 2018 crop should produce about 10 percent CBD content, and should bring about $25 to $35 per pound. With a yield of about one pound per plant and up to 2,500 plants per acre, that’s around $60,000 per acre…” (Rice 2018).
So, if you’re looking to sell 100 pounds of 10% CBD hemp flower, you can reasonably expect $3,000-$4,000 for your crop. Or, $2,500-$3,500 if you were to go off of the example in the pull-quote above.
Now, that’s not bad…but it’s certainly not that good and you could do better by splitting your hemp crop with a hemp processor.
For instance, say you’re looking to “split” that same 100 pounds of 10% CBD hemp flower with a hemp processor (such as Nemadji), then you’d be looking at splitting the price of an end product as opposed to taking peanuts for the initial sale of raw material.
Calculating the Math for Selling vs. Splitting:
Extraction Process – Take that 100 pounds and multiply it by 10% CBD and end up with 10 pounds of crude oil.
10 lbs is 4.5 kg, or, 4,500 grams @ $3.90-$4.50 crude market price equals $17,550-$20,250 for that same 100 lb 10% CBD hemp crop.
Post Processing – Take that 10 pounds of crude oil and refine it into 7.5 pounds of isolate/distillate (at a 20% yield loss).
7.5 lbs is 3.4 kg, or, 3,400 grams @ $7.50-$10.00 isolate market price equals $26,860-$32,300 for that same 100 lb 10% CBD hemp crop.
Return On Investment
Selling 100 pounds of 10% CBD hemp flower to a processor will net you $3,000 to $4,000.
Splitting that same 100 lbs of 10% CBD hemp flower with Nemadji Processing will net you half of $17,550-$20,250 for crude oil ($8,775-$10,125) or half of $26,860-$32,300 for isolate ($13,430-$16,150).
The Real Question Over Hemp Flower
Would you rather make $3,000-$4,000 or $8,775-$13,430 for the same 100 lbs crop of 10% CBD hemp flower?
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.
Don’t you agree, splitting your hemp crop with a hemp processor makes sound financial sense? Are you ready to split your hemp crop with a hemp processor – call Nemadji at 1 (715) 318-0026 to start processing today!
The numbers presented herein represent averages in costs, output, and results. The analysis is not a financial guarantee and shall not be used to create business plans, obtain funds, or make any kind of financial decision. There are inherent risks in any business. Some key risks for the three scenarios of brokering, splits and toll processing have to do with quality, transportation, yield, and labor. This guidance is intended to help the customer understand options and shall not be construed as an inducement for any kind of investment. Use the information presented here at your own risk.
Splitting your hemp crop with a hemp processor makes sound financial sense, and it’s a whole lot easier than shopping your crop at prices no one will pay!
Hemp biomass yield per acre
Industrial Hemp: The definition of Industrial Hemp is “a plant of the genus Cannabis and any part of the plant, whether growing or not, containing a delta-9 tetrahydrocannabinol (THC) concentration of no more than three-tenths of one percent (0.3%) on a dry weight basis.
Growing Conditions: Hemp prefers a mild climate, humid atmosphere, and a rainfall of at least 25-30 inches per year. Good soil moisture is required for seed germination and until the young plants are well established.
Soil: One common myth is that hemp can be grown anywhere. Hemp grows best on a loose, well-aerated loam soil with high fertility and abundant organic matter, with a pH of 6.0 – 7.5.
It appears that industrial hemp seed is quite sensitive to a lack of soil moisture at planting. This trait has not been quantified but could readily contribute to stand failures. Seed should be planted in soils with adequate moisture to encourage rapid germination (Source: Univ. of Kentucky). Cinderite lava sand is recommended to provide aeration and porosity to the soil, increase its water holding capacity, increase the paramagnetism, and make soil nutrients more available to plant roots.
Natural-organic growing programs improve soil health and the production of plants. Synthetic, toxic fertilizers and glyphosate-based herbicides have been shown to destroy beneficial microbes in the soil, leading to lower soil quality, less water absorption, lower nutrients, and likely higher levels of mold, disease, and fungus due to the imbalance of beneficial bacteria in the soil.
Does Hemp require a lot of water?
Cotton needs about 50 percent more water per season than hemp.
Planting and Harvest: Planting depth should never exceed one inch (1”), and 0.5 to 0.25 inch is preferred. Industrial hemp seed can be successfully drilled with both conventional tillage and no-till protocols. Seeding dates will depend equally on the harvestable component (fiber, grain, or cannabinoids) and the variety. Fiber crops will be harvested at the onset of reproductive growth and should be planted as early as possible to maximize vegetative growth (biomass production).
How long does it take to grow hemp?
Hemp is typically ready to harvest in four months. Different varieties of hemp may produce a varying quantity seeds or fiber, and they may also differ in oil composition.
Pesticides: The University Big Ag conventional protocols currently state that there are no pesticides (herbicides, insecticides, fungicides, nematicides, etc.) labeled for use in industrial hemp crops in the U.S.
Natural Organic programs recommend many FIFRA 25(b) exempt pesticides that can be used in growing operations such as PureGro commercial products. It is best practice to receive approval for all inputs and procedures since harvested product requires State approval.
How much is hemp worth per acre?
There is currently a wide range of reported ROI on hemp production. With estimated production expenses of $286, net returns for hemp for fiber ranged from $116 to $473 per acre. Returns for hemp seed were estimated to range from $60 to $800 per acre. Given costs of production at $196 per acre, net returns ranged from $136 to $604 per acre (McNulty).
One acre of hemp can yield an average of 700 pounds of grain, which in turn can be pressed into about 22 gallons of oil and 530 pounds of meal. The same acre will also produce an average of 5,300 pounds of straw, which can be transformed into approximately 1,300 pounds of fiber. In 2016, another pilot program baled the hemp stalks after combining grain and reported a fiber yield of 1.07 tons per acre.
Another estimate is reporting that 8,000 pounds of hemp seed can be produced per acre. When cold-pressed, the 8,000 pounds of hemp seed yield over 300 gallons of hemp seed oil and a byproduct of 6,000 pounds of high protein hemp flour. Seed oils are both a food and a biodiesel fuel.
Hemp produces four times as much paper as trees per acre, and trees take many years to reach maturity for harvest.
How much oil can you get from an acre of CDB hemp?
CBD or Cannabidiol, is a chemical compound that can be extracted from an industrial hemp plant (primarily from the floral material). CBD compounds are not narcotic or included in the Controlled Substances Act and is different from the THC that is found in marijuana.
CBD hemp should produce about 10 percent CBD content, and should bring about $25 to $35 per pound. With a yield of about one pound per plant and up to 2,500 plants per acre, that’s around $60,000 per acre.
University Information and Data
[Editor’s Note: The Universities’ fertilizer guidance are based upon conventional Big Ag protocol. Natural Organic programs offer other recommendations]
Hemp biomass yield per acre Overview Industrial Hemp: The definition of Industrial Hemp is “a plant of the genus Cannabis and any part of the plant, whether growing or not, containing a