CBD Production Has Many Moving Parts. And Bottlenecks In Processing Continues To Be An Issue For Farmers.
After the 2018 Farm Bill legalized cultivating hemp, growers registered about nearly 64,000 acres of hemp, wanting to make the most on this billion-dollar market.
There was just one problem — come harvest, options were limited for processing all that biomass into raw oil that is later added to products like creams and ointments.
This restriction at the extractor made things difficult for the farmers trying to get good pay for their crops and made bulletproof contracts even more important. Hemp contracts are in three kinds; the first where the extractors purchase the biomass from growers, the second called the toll processing, and the third is kind of a split contract.
With oversupply, the prices reduced, and a lot of extractors were financially hit. Growers started accepting split contracts in an attempt to receive anything of value in return. Farmers are not happy with this in the long run since extractors begin to sell CBD oil at lesser prices for quick money, pushing the prices even lower. Unscrupulous brokers in the industry are also a major issue. Contracts for millions of pounds of hemp has not gone through due to these elements. This is one of the reasons you should do your research properly before getting in. However, experts believe that supply and demand will be balanced better by the next year.
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CBD is one of many powerful cannabinoids found in hemp known for helping to support our body and mind. Here at Healing Dragon CBD we do not intend to make unfounded medical claims about the health benefits of CBD. The FDA has not confirmed that CBD cures, treats, or prevents any diseases or conditions. Before reading this article please take a moment to read our full disclosure statement.