Chances are, you’ve come across CBD. You’ve probably heard so much about it on the news, social media, streets, and the Sunday paper among other sources. The decision to pass the 2018 Hemp Farming bill by the US government has sparked massive public interest in the CBD industry. The news changed the placement of hemp under the Controlled Substances Act. Now, instead of being illegal, hemp-derived CBD can be farmed and sold anywhere in the United States. As an expected ripple effect, eagle-eyed investors have already smelled the money and are moving closer to it.
According to Cowen & Co., the CBD market is expected to hit $16 billion by the year 2025. Demand for CBD is at an all-time high. This surge in demand for CBD hemp products is already pushing markets into new territories with regards to sales value. One major trend we have witnessed is the incessant move of cannabis companies towards wholesale and farming of CBD hemp crop. Why is this so? We seek to answer this very question on this guide.
CBD has been known to be a wondrous treatment for anything from anxiety to diabetes. Whether you have sleep problems, muscle pain, arthritis, epilepsy, cancer, colitis, or depression, the natural compound cannabidiol could be your best shot at good health again. CBD hemp promises to do all these without getting you high, like marijuana would.
Farmers and cannabis companies are all in on this new discovery. After all, why waste precious time and effort planting beans and potatoes when you can switch to farming hemp instead and fetch 10-50 times as much profits per acre? According to Chuck Adams, CEO of Frogsong Farm located in the Willamette Valley in Portland, you can easily fetch $25 million on the retail market by growing hemp.
Hemp can be grown on virtually any type of soil. It doesn’t need million-dollar greenhouses filled with high-intensity lights and sensors found on pot farms. Additionally, farmers don’t have to spend a fortune in fertilization and pesticides to grow a healthy crop of CBD-hemp. Most CBD consumers are all about chemical-free products; hence, the fewer the pesticides, the better. With a little mulch and compost, you should be good to go. This is not forgetting the fact that hemp cultivation produces oxygen, displays no topsoil erosion, and can replace a wide range of environmentally-toxic products. Except for heavy mechanization and labor, hemp farming is pretty easy and fetches a handsome return if done right. As a matter of fact, some states (such as North Dakota) have even lowered hemp farming fees to encourage more farmers to plunge into the CBD market.
As the CBD market explodes, many cannabis companies are finding exciting opportunities in wholesale. The 2018 Farm Bill was only the beginning of some serious fun in the CBD game. Now, international players will join the party and make the game even more massive and interesting.
Canopy Growth, Canada’s leading cannabis company, has already announced intentions to join the American market. The enterprise has received a New York license for processing CBD and intends to splurge $150 million to create a hemp-based industrial park.
This is one example of a big-time stakeholder in the CBD market. Plenty more are in the works and will soon come out in the open. This only means one thing: even more demand. This explosion will push retailers to buy wholesale cannabinoids products. Buying in bulk means you can meet the needs of your customers before your competitor does. Other reasons everyone is rushing to CBD wholesale include:
- Price: When it comes to price, cannabis wholesale companies such as IHF LLC are cashing in crazy profits. You don’t need to be a genius to know that wholesale price is lower compared to retail price. CBD distributors sell their products at a slightly high price to cover up for the mark-up price of products.
- Quality: Extracted CBD strains acquired from reputable manufacturers are made from the purest CO2 extraction process to prevent toxic chemicals from finding their way to the end product.
- Cultivation source: Hemp cultivation matters as it determines the potency of the finished product. Being in wholesale means having access to reputable farmers with experience in cultivation and extraction of hemp.
With all these benefits of growing and selling wholesale CBD, it is no wonder cannabis companies are headed in that direction. Some actually perform both farming and offering CBD in bulk, killing two birds with one stone and smiling all the way to the bank.
Disclaimer: This article is intended for information and entertainment purposes only and is not intended to reflect the specific views of the publication.