Whether you are a marijuana farmer, buyer, contractor, or anyone else in the hemp clone industry, the concern of getting constant supply and constant market for your products remains a top priority.
It explains why industry players engage in several arrangements, one of them being the popular Buying Futures concept. Perhaps you are wondering what that means, and you will know in a short while as this article brings you up to speed about the whole idea! So, let us get started by explaining what is meant by buying futures.
Buying Futures Explained in Detail
Buying futures is indeed one of the most recent developments in the marijuana investing space. It may sound complicated if it is your first time hearing about this terminology. However, it is nothing strange to both farmers and buyers (contractors or processors).
Also known as hemp futures contracts, buying futures is a merely an agreement for a hemp clone producer to cultivate product specifically for a particular cannabis processor or buyer. It typically allows both players to enter the hemp clone industry with full confidence.
Hemp futures contracts are indeed a critical development in the cannabis industry and have since played a significant role in helping manufacturers, processors, handlers, and farmers to hedge out risks against the unforeseeable.
For instance, a CBD oil processor may need a specific high CBD and low THC hemp farmer to produce their supply. By buying futures, they lock in the supply of their preferred clone, including timing of delivery and pricing.
The producer, on the other end, will have assurance that there will be a customer for their harvest at agreeable conditions. That said, many people are wondering whether this new development has many benefits. Well, let us shift gears a little bit and respond to this concern!
Benefits of buying futures on hemp clones before everyone else
As you may have seen, buying futures on cannabis clones has advantages, especially from the buyer’s point of view. Here are a few of them:
1). Hedging against future price fluctuations
A cannabis processor buying a portion of their raw materials through a future contract plan enjoys the benefit of hedging themselves against future price fluctuations and ultimately guarantees them revenue streams. It is the merit of locking in a price for produce at a future date.
Take, for instance, a situation where a kilogram of cannabis flower goes for $100 in December 2018, and a processor is worried that there will a scarcity of the produce come December 2019 where the price is likely to go higher. The processor, in this case, will enter into a year future contract for $100. It gives them the right to buy the produce for $100 in one year even if the market price rises incredibly higher than that!
2). Hemp clone processors are assured of continued supply
Cannabis buyers are not only concerned about future costs, but also about the supply. Just like any other type of farming, cannabis suppliers experience shortage and surplus depending on a variety of factors. However, if a cannabis buyer or processor enters into a future contract with a hemp clone farmer, there is a guaranteed continuous supply of produce because the farmer knows exactly the amount required over a given period.
3). Assurance of getting high-quality strains
More often than not, processors need a specific hemp clone cultivator to produce their raw materials. The reason for specifying the producer is to get the right high-quality strains. By buying hemp futures, such processors lock in a stream of their preferred clones, thereby benefiting from consistency and quality of the raw materials supplied.
The cannabis industry is rapidly growing due to several states legalizing medical and recreational marijuana. The hemp industry is also on the verge of drastic growth this legalization. It is the wave of the future and you definitely won’t want to miss out on the possibilities!
† FOOD AND DRUG ADMINISTRATION (FDA) DISCLOSURE
These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.
This website contains general information about diet, health and nutrition. The information is not advice and is not a substitute for advice from a healthcare professional. Discount Pharms acts as a marketplace between the Vendor and the Buyer. Discount Pharms is not a party to any agreement between Buyer and Vendor, and is not liable to either Buyer or Vendor for any loss incurred as the result of a Buyer’s or Seller’s acts or omissions. Each of Buyer and Vendor acknowledges and agrees that it is solely responsible for ensuring that it complies with all relevant federal, state, municipal, or other laws at all times, and that it has obtained any licenses, permits, or clearances required to perform under local and national laws pertaining to cannabis and hemp. In doing business with Discount Pharms you agree to our terms and conditions please contact us if you have any questions: https://www.discountpharms.com/terms-of-service/