Ever since the 2018 Farm Bill made it federally legal to grow hemp, the cash crop has made a major comeback and farmers are experimenting left and right. But there’s one big question on everyone’s mind: “Can I actually make money growing hemp?”.
Absolutely you can! And because we’re such standup guys over here at Hemp Extraction, LLC, we’ve compiled a list of 5 ways to turn that green hemp into some green cash.
1. Sell Your Biomass
This is probably the quickest exit strategy for hemp farmers today. Simply plant your seeds, grow your hemp throughout the 90-120 day growth cycle, harvest, dry, and exchange the milled biomass for some cold, hard cash. As hemp biomass sells for a relatively low price-per-pound, the trick here is to make sure that you can grow profitably. That means finding cost-effective labor, resilient genetics, and maintaining a well-irrigated field. A biomass buyout is actually one of our pricing options, so if you think that this is the best route for your farm, give us a call today!
2. Get Your Hemp Biomass Extracted
If you want to exponentially increase the value of your biomass, then you next best bet is to have it extracted into Winterized Oil. For best results with this option, you’ll want to make sure that your hemp has the highest possible CBD percentage. That means starting with the right genetics, AND knowing just when to harvest. If you live in a state where recreational marijuana use is still illegal, then you’ll need to walk the line between high CBD and a D9-THC percentage below 0.3%. To make this balance as easy as possible, we recommend using either Sweet Tea or Stormy Daniels.
Once you’ve dried your crop and are ready to extract, Hemp Extraction, LLC actually offers two different pricing options. The first is a 50/50 split, wherein you have no upfront cost and we split the profit with you once the resulting winterized oil is sold. The second option is to pay us a price-per-pound extracted and then pocket ALL of the profit for yourself. Either option can be lucrative… Winterized Oil goes for ~$125/liter for Premium, and a whopping ~$190+/liter for Platinum.
3. Keep Going to Distillate and Isolate
Distillate and Isolate are the next steps beyond Winterized Oil and command even higher sale prices. These bi-products are valuable because they’re utilized by manufacturers to produce direct-to-consumer products… such as tincture, gummies, vape cartridges, Delta 8, and all of the other goods you’ve seen on the shelf of your local CBD retailer.
Curious about how much you could make by turning your biomass into distillate or isolate? Use our calculator to get an estimate on the retail price. You might be surprised at just how much you’d be liable to make.
4. Smokable Flower
If you’d like to skip the chemistry and go straight for the growing market of people who’ve come to enjoy smoking CBD hemp flower, then this could be a good option for you. The cool thing about this is that you could potentially keep the entire operation under your own roof and keep all of the profit for yourself. We would still recommend using professional drying services to ensure a high-quality bud, but if you have the capital to set up a sustainable operation for yourself, then by all means, go for it!
In terms of product design, you can simply package the cured flower and sell-as is, or you can go a step further and transform your greens into something more user-friendly, such as pre-rolled hemp cigarettes. Want to bump up the retail value even further? Consider infusing your flower with Delta-8, the hottest new derivative from the hemp plant that is said to produce a more functional “high” then its Schedule 1 counterpart.
5. Sell Hemp for Fiber and Culinary Use
Hemp isn’t just used for CBD! In fact, hemp was a cash crop for many years in the United States for its industrial uses before its prohibition. Hemp fiber is cost-effective, resilient, and environmentally friendly. The easy thing about this option is that you won’t have to be as concerned about the “sex” of your crop. While hemp being used for CBD needs to be feminized, hemp that’s used for industrial and culinary purposes is not so restrictive… thus making this option great for first-time hemp farmers.
So there you go! 5 great ways to turn this amazing crop into dollars in your pocket. Have questions? Or suggestions for other hemp use-cases? Let us know in the comments. And as always, if you’re looking to turn that next crop into some valuable Winterized Oil, give us a call and we’ll reserve your spot!