Hemp Specifications

Updated October 2020

Hemp Biomass

Hemp Biomass is priced by the content of CBD per pound. A pound of biomass containing 10% CBD at $1/point costs $10. Pricing is shown as % CBD/lb.

There are no universal standards for moisture content and foreign matter, but 10% or lower crop moisture and less than .1% foreign matter is typical. Foreign matter is subjective at this stage of industry development; some lots may contain more large stems with low relative CBD content while others have been sorted more thoroughly. Some processors with drying capacity use scheduled discounts for drying crop to their specification, generally targeting moisture levels under 10%, while a select few extract wet material. Hemp Biomass must be accompanied by a Certificate of Analysis that indicates cannabinoid profile and non-detectable or permittable levels of agrichemicals, heavy metals, or mycotoxins.

Biomass is sold loose in super sacks, baled and wrapped, or in pelleted form, based on the processor’s requirements or producers marketing strategy. Homogenization ensures consistent cannabinoid content throughout a lot, but many bulk lots are not homogenized, making advertised CBD content unrealistic. There are subjective attributes that are difficult to characterize in published standards. This includes appearance/color, and “nose” – an indication of terpene content. Premiums for desirable cannabinoid profiles are not consistent, but often trade at parity or up to 3x or more for CBG dominant material, or material with higher levels of other minor cannabinoids. In lieu of reporting CBG or other minor cannabinoid dominant biomass pricing separately, readers can assume pricing premiums of 2x for this material. Discounts are often applied to material under 8% CBD, or material with issues needing remediation, like mold or pesticides. October 2020

Organic Hemp Biomass

Same as Hemp Biomass, with certified organic designation. October 2020

Crude Hemp Extract

Crude Hemp Extract (CBD Oil) is priced in the Hemp Bulletin by the kilogram. This viscous to partly crystalized product is also priced by the volume-appropriate measure “liter”, which is used colloquially to represent 1 kilogram. The two are not interchangeable, with the typical liter of extract weighing ~900 grams. Crude extract typically contains 58-68% CBD content, including the full spectrum of cannabinoids, phytonutrients, terpenes, plant waxes and lipids. The Jacobsen’s published prices reflect trades on 60-68% CBD content.

Crude Hemp Extract is commonly winterized and decarboxylated. Winterization removes plant lipids and waxes; decarboxylation uses temperature to activate cannabinoids, converting them from the acid form to a bioavailable form. Crude Hemp Extract commonly contains 3%+ THC, non-compliant for retail markets. Crude Hemp Extract is the primary hemp extract and can be further refined into distillates or isolate. Crude Hemp Extract is most commonly produced using CO2 or ethanol, but also hydrocarbons like hexane to a much lesser extent. This product also must be accompanied by a Certificate of Analysis that indicates cannabinoid profile and non-detectable or permittable levels of agrichemicals, heavy metals, or mycotoxins. October2020

Prices in the Hemp Bulletin reflect base pricing for this segment, but market pricing may include a number of premiums we are currently aggregating. These premiums include GMP and ISO certifications, but some transactions in this category may include operations that are self-certified, utilizing GMP’s in their processes. Pricing premiums may also include certified organic designation, which indicates certified organic biomass was utilized for feedstock and certified organic ethanol, or CO2 was used in the extraction process, in a certified facility. Premiums may also indicate CBG or other minor cannabinoid dominant material.

We are discontinuing reporting of a separate premium category. In lieu of this, a system of premiums or discounts are applied to reported pricing. There is no consistency in the premiums realized in the marketplace, making the reporting of narrower pricing ranges and attributable premiums impractical at this stage of industry development. Products that fall outside of our specification range often trade below or above published prices. Referencing product specifications is key to understanding pricing, as many products that fall outside of reported price ranges differ in character from the bulk of product traded in this category.

Full-Spectrum Distillate

Full-Spectrum Distillate is the first stage of the refinement process for finished crude extract. CBD content for The Jacobsen’s published pricing is 75%-85%. No additional additives, such as “spiking” with isolate. This viscous, to partially crystalized product is priced here by the kilogram, though “liter” is often used colloquially to represent 1 kilogram. The two are not interchangeable, with the typical liter of extract weighing ~900 grams. The distillation process can target any molecule for exclusion and create a range of novel products. Full-Spectrum Distillate generally contains a full profile of cannabinoids and terpenes, but most waste products have been removed, resulting in a refined extract with an amber color and a consistency based on CBD content or distillation practice. Higher concentrations of CBD may offer some economy, but some formulators choose to work with a more flowable product with lower CBD content.

Prices in the Hemp Bulletin reflect base pricing for this segment, but market pricing may include a number of premiums we are currently aggregating. These premiums include GMP and ISO certifications, but some transactions in this category may include operations that are self-certified, utilizing GMP’s in their processes. This category also includes certified organic designation, which indicates certified organic biomass was utilized for feedstock and certified organic ethanol, or CO2 was used in the extraction process, in a certified facility. It also includes CBG or other minor cannabinoid dominant material. We are discontinuing reporting of a separate premium category. In lieu of this, a system of premiums or discounts are applied to reported pricing. There is no consistency in the premiums realized in the marketplace, making the reporting of narrower pricing ranges and attributable premiums impractical at this stage of industry development. Products that fall outside of our specification range often trade below or above published prices. Referencing product specifications is key to understanding pricing, as many products that fall outside of reported price ranges differ in character from the bulk of product traded in this category. October 2020

Broad-Spectrum NDT Distillate

This product has been remediated to render THC levels non-detectable, or NDT. CBD content for our published pricing is 80%-88%, with a diverse cannabinoid profile with terpenes, but waste products have been removed, resulting in a refined extract with an amber color. No additional additives, such as “spiking” with isolate. This viscous liquid to partly crystalized product is priced here by the kilogram, though “liter” is often used in the marketplace colloquially to represent 1 kilogram. The two are not interchangeable, with the typical liter of extract weighing ~900 grams. As with any distillate, refiners can target molecules for exclusion, and create a range of novel extracts. NDT products may contain variable trace THC content. Different methods employed in laboratory analysis can return different results. These products may be marketed as “T-Free”. Based on current lab practices, THC content will vary, but is generally below .1% THC. Remediating THC is a time-consuming process, adding a significant price premium to full-spectrum products. October 2020

Prices in the Hemp Bulletin reflect base pricing for this segment, but market pricing may include a number of premiums we are currently aggregating. These premiums include GMP and ISO certifications, but some transactions in this category may include operations that are self-certified, utilizing GMP’s in their processes. This category also includes certified organic designation, which indicates certified organic biomass was utilized for feedstock and certified organic ethanol, or CO2 was used in the extraction process, in a certified facility. Pricing premiums can also reflect CBG or other minor cannabinoid dominant material. We are discontinuing reporting of a separate premium category. In lieu of this, a system of premiums or discounts are applied to reported pricing. There is no consistency in the premiums realized in the marketplace, making the reporting of narrower pricing ranges and attributable premiums impractical at this stage of industry development. NDT products are a perfect example, where vendors employ practices that reduce THC to LoD well below .01% Products that fall outside of our specification range often trade below or above published prices. Referencing product specifications is key to understanding pricing, as many products that fall outside of reported price ranges differ in character from the bulk of product traded in this category. October 2020

CBD Isolate

Isolate is pure CBD, white powder or crystals, containing 99%+ cannabidiol.

Isolate is priced by the kilogram, and our published price reflects a minimum of 99% CBD content. Isolate contains no THC or any other cannabinoids and is accompanied by a COA indicating these attributes.. October 2020

Hemp Flower

Hemp flower is priced by the pound. The Jacobsen’s published pricing is for bucked, machine trimmed, mold free, dense, bright green flower with a minimum 10% CBD content, and below 13% moisture content. Product may be quick dried but retains a desirable terpene profile or “nose”, with abundant trichomes, and generally are a minimum of 1” in size. Slow dried and cured or hand trimmed flower will be represented at the top end of – or exceeding – our published price range and is often indoor or greenhouse grown. Product is accompanied by COA indicating cannabinoid profile and potential contaminants. Hemp Flower premiums are not consistent, and a number of subjective characteristics can influence pricing. Pricing can easily be 2x to 3x our mid-point pricing. “Smalls”, material consistently less than 1”, or “trim” trade at a discount, as do light, airy flowers. October 2020

Organic Hemp Flower

Same as Hemp Flower, but with certified organic designation. October 2020

Hempseed Grain

Hempseed is priced by the pound. Hemp seed is particularly volatile and must be aerated within hours of harvest. The following table lists specifications for hempseed: October 2020

Organic Hempseed Grain

Same as conventional Hempseed but includes certified organic designation. October 2020

Hemp Fiber

Raw Hemp Fiber is priced in the Hemp Bulletin by the pound; transactions are also priced by the ton in the market. Hemp is field retted for 2 weeks to break down the bond between bast fiber and hurd, and resulting straw is baled dry to specifications of buyer, typically in the 12%-14% range. Price ranges reflect quality and geography. Transportation is costly; delivery to the processors dock is at the top end of the pricing range.

Fiber specifications will evolve rapidly as new products are developed. Fiber markets will initially consist of feedstock for composite lumber, non-woven textiles, and hurd for animal bedding. As hurd trading volume increases, The Jacobsen may add this pricing to the Hemp Bulletin. The US currently lacks essential infrastructure and expertise for producing long-strand bast fiber for woven textiles, but initiatives are underway to develop capacity. Specifications are different for various product applications, particularly hemp used for composite lumber, which is not decorticated. October 2020