The philosophy of “go big or go home,” might work well for sports teams, but it’s not a good strategy for farmers looking to grow hemp for cannabidiol (CBD), according to Corbett Hefner, vice president of research and development for Colorado-based Formation Ag.
“We saw that happen in Oregon, and many of those farmers went broke,” he notes.
The financial opportunities with CBD are equally bleak now. Spot biomass prices have continued to trade lower on a month-over-month basis, recently transacting at a midpoint price between $0.62 in the Great Plains to $0.72 per point in Colorado, according to PanXchange, a commodity trading platform.
The price for CBD-yielding flower is based on dollars per point per pound. So, a Colorado crop containing 10% oil sold at a midpoint price of 72 cents per point the end of January, an average of $7.20 per pound.
A year ago at this time, that same crop would have been valued at $3.50 per point or $35 per pound, which is reflected in a chart by PanXchange at the bottom of this page.
The lack of dollars has caused farmers in much of the U.S. to apply the brakes to production, and understandably so.
“If you haven’t seen a lot of buying contracts out there lately, there are reasons for that,” says Dave Neundorfer, CEO of Open Book Extracts. The company operates a processing facility and is headquartered near Roxboro, N.C. [Read More @ AgWeb]