Very unique tolling contract being offered. Where we sell the finished products for you as well

We take it to T free distillate, and then sell it for you.

For example on 1000 pounds at 15% it costs you roughly 75,000$ to take it T free including the cost of us selling it for you.

And we return roughly 130,000$ yielding around 60,000$ profit

It’s a very unique situation where the farmer drops off biomass and basically is handed cash back.

Curious if something like these terms would be interesting to any farmers.

DM me!

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I’m sending Farmers your way

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Cool. Appreciate it boss man

I don’t understand the contract. They pay you 75k and only get back 55k?

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Haha sorry. No they recieve 55,000 profit

So they recieve like 130,000$ back after paying 75,000$ for it to be processed

What time frame are you expecting the sale of 1000lbs of biomass like your example to take?

Are there any penalties for you if you can’t move it in a reasonable amount of time?

What are you going to do to hedge against price drops in the cbd industry?

This seems extremely risky. Especially with how volatile cbd pricing seems to be.

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It will be simply based on going rates. Prices are volatile yes but not so volatile they drastically change week by week. Maybe 100-200$ a kilo up or down. But it simply goes into our inventory and is sold through the same avenues. So we are obviously incentivized to get the best possible pricing.

Anything else will be between me and the farmer.

I already have 3 farmers in discussion right now. Risk is relative

Maybe not week to week but if your processing several tons of biomass from start to finish the price can change a lot.

So in other words. There is no price insurance and possibly a farmer could give you 75k and lose money.

So the material goes into your inventory…what happens if your inventory is full? Farmer needs to wait? Go hungry? I guess these are questions for those farmers to ask.

Seems like a shit ton of risk. And usually risk isnt relative. It’s measurable and usually how the insurance business is ran but I wish you luck.

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Who’s doing tons a week? Your making a lot of assumptions. We have weekly orders that consistently take out inventory. Only processing 1-1.5 tons a week.

How would a farmer ever lose money?

That would mean 40 kilos of t free disti would have to drop to 1500$ from 3000$ in 2 weeks…

If it was a bad deal then it won’t work and we wouldn’t offer it…

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The profit isn’t $55,000 because the farmer has costs involved in producing the product beyond what you charge.

It doesn’t make sense that they would have to pay you the $75000 up front.

How are you incentivized to get the best price possible? Cosignment would probably be the way to go, with you taking a percentage of the sale price.

What if you ruin their material?

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Well said black and I don’t understand why farmers don’t somehow you need to work together create their own processing plant/ CO _op. either by district or they have those broken up . Idk
I don’t appreciate someone sitting in a washed out bridge with a barge saying only a small pole to go to Riverwalk Rv pay taxes for that bridge to have access to that road that we get pharmacy away by Carrie so this far and gets to keep working and he should be getting to fix up his house replace his siding put it in your van get a new truck pay for the wife’s surgery the kids wedding it shouldn’t be the toll man almost getting 1/3… he took no risk he didn’t have the sleepless night because of the drought or the rain or the pests or anything I mean that right there is enough for me to not want to go to the tollman till demand is higher than beginning in mid end of harvest otherwise it isn’t worth it and they act like if they’re doing you a favor your doing you a favor by making money off the farmers hard work which to me is like a parasite feeding for free… doing nothing really to help the host but says hey I’m here to make sure you aren’t overstocked on blood, bad analogy. Very similar in my opinion I’m not meaning to offend in my mind I’m just not being politically politically correct and I’m just being upfront and straightforward calling Madrona Trio Madrone tree not a rosebush, I heard the battery is almost dead on my iPad I’m not gonna sit here and re-correct and re-correct with the devices in properly scribing for me that’s why it’s best for me not to talk cheers everyone have a merry Christmas and a good new year

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true.

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You charge 75 bucks a pound to process? Seems sky high.

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Obviously us ruining their material would be covered in the agreement… I mean that’s just common sense. Going back to killas comments.

Farmer doesn’t pay us 75,000 up front… not sure where y’all are getting all your assumptions from.

And you forget that labs are backed up for months… farmers don’t know where to sell their product…
that we are charging market value prices for our services…
It’s simply all the services at one stop instead of going to one lab to take it to disti, another lab to take it to t free, then to a broker to sell it.

That’s what they’re going to end up paying to get their oil sold anyways but having to use multiple entities.

On top of all of that even if it’s 25,000 per 1000 pounds for their costs that’s 25.000-30,000 per thousand pounds of profit. That’s like getting 25 to 30$ a pound if they’re selling their biomass. Without having to do anything

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If your labs are only giving you 20 kilos back from your 1000 pounds they’re scamming you

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We have been operating like this for a while now. It works great. So i believe this is going to turn out well for you

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Ya it’s simple and it creates an answer for the farmers who are sitting on way to much biomass. Thanks glad to see someone else has already made this work. Just a bunch of haters not quite grasping the concept :grin:

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I mean it sounds.like a great idea as long as the numbers are competitive and your aren’t paying too much extra for convenience

Wish I could get my material to you from Michigan

Why can’t you?