Hemp cultivation has reached a fever pitch in the U.S., particularly after the signing of the 2018 Farm Bill. However, hemp is a plant that consumers want in many forms, not just the flower. Tinctures, capsules, vape pens, balms, and gummies are just a few of the finished products in high demand.
Some hemp farmers wish to outsource the manufacturing of these refined goods as opposed to keeping production in-house. Referred to as hemp toll processing, this method ensures cultivators are getting the most from their crops – including biomass.
What is Hemp Toll Processing?
Hemp toll processing can be done with both raw bud or biomass, which is waste plant material like leaves and stalks. The dried and cured material is converted into a concentrated version, typically with the goal of extracting cannabinoids like CBD or CBG. The concentrated substance can either be returned to the cultivator or processed further into products like the ones listed above.
Toll processors specifically exist as a third-party, but their overall goal is to help make each harvest as profitable as possible. Methods of extraction may include using solvents like CO2 or food-grade alcohol. It’s important for cultivators to research processors before deciding which would be the best for their customer base.
Why is Toll Processing a Viable Option for Growers?
There are several key reasons a hemp cultivator may wish to deploy toll processing services. Creating concentrated hemp products is a science in and of itself, requiring pretty substantial training. Knowing this, some cultivators may wish to focus their efforts on the agriculture side in order to perfect their crops. Extraction also creates a need for large-scale equipment which can be rather expensive to own/lease, house, and operate.
Furthermore, toll processing specifically guarantees every viable part of the plant is put to good use. This increases profit overall, something any business owner would want. Toll processors can be paid per pound of material or be offered a split of the finished product.
How Does Compliance Factor In?
In a highly regulated industry like hemp, compliance is the name of the game. Precise and diligent recordkeeping from seed to sale are of the utmost importance in order to remain in good standing with state and federal officials. Additionally, it helps cultivators understand the nuances of their businesses. Toll processors will provide pertinent production data to both growers and regulators.
The federal legal limit for THC content is 0.3% but some consumers desire zero-percent THC goods, which toll processing can achieve. Testing is done at several points throughout the manufacturing in order to maintain compliance.
The KLER Advantage
Streamlining hemp toll processing for both cultivators and extractors is the goal of the KLER platform. Purposely built for the hemp industry, our software tracks testing results, shows costs of production, and intuitively provides all the data you could possibly need. View side-by-side results of materials as it leaves and returns from processing in order to fully grasp the potential profits of your crop.
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