How much does CBD oil cost? Cannabidiol (CBD) is a rapidly emerging industry across the U.S. as a wellness product for humans and pets. This substance is derived from hemp plants and is used to treat conditions including depression, anxiety, inflammation, and others. CBD is marketed in the form of oil, lotion, soft gels, candies, and more.
One common concern among consumers is the cost of CBD. When shopping for CBD oil online you will encounter a wide range of price differences. A 500mg bottle of CBD oil may range from $40 to over $200. It is critical to ensure that you read the ingredients carefully.
What is Cannabiodiol (CBD)?
CBD is a natural product sourced from hemp plants that are used in a variety of ways. In a pure isolate form, CBD is a white powder that has no scent or taste. It is seamlessly mixed with other ingredients and dissolves in liquid.
The manufacturer of CBD oil is responsible for the purity, quality, and safety because the FDA does not regulate it yet. Unlike the Tetrahydrocannabinol (THC) substances derived from marijuana, CBD is not psychoactive and does not produce a “high.” The same applies to hemp, which is also a derivative commonly used in industrial applications.
Full Spectrum “Entourage” Effect
In contrast to isolate, “full-spectrum” CBD oil refers to oil that contains other cannabinoids found within the plant. Therapeutic advantages are shown to exist in clinical trials from the multiple compounds referred to as the “entourage” effects of CBD. Manufacturers continue to modify and test various mixtures to determine optimum formulas for different treatments.
The other substances contained may include proteins, fiber, terpenes, and others. The leading companies that produce these products will have their oil tested by independent laboratories. These oils are then properly labeled with the ingredients and clear instructions regarding the dosage and administration.
The Agricultural Marketing Resource Center recently discussed the confusion that is largely associated with marijuana and hemp. Industrial hemp is a highly fibrous material that does not contain significant levels of the psychoactive THC in marijuana. The level of THC found in marijuana is generally between 3 and 30%. Industrial hemp typically contains less than 1%.
Factors Influencing CBD Oil Cost
Those who produce an “organic” product emphasize this as a contributing factor in their “premium” level oil. Even if the oil is not fully organic, it must not contain harmful chemicals such as pesticide. There are fundamental costs in growing the plant, which obviously will require seeds, labor, and equipment.
Some farmers or those possessing large areas of land choose to lease their land to growers. A report in Oregon stated that lease pricing varied considerably from between $1,000 to $5,000 per acre. This seems like a considerable expense; however, reports suggest that an acre of land can generate more than $40,000 in profits.
The soil is generally covered when growing these plants except for a section where each plant rests. A thin sheet of plastic is typically used for this. It serves the same function as mulch would in weed prevention. There is now a more costly eco-friendly plastic that is biodegradable. One report stated that a 4,000-foot roll of biodegradable plastic was priced at $225 versus $115 for a traditional roll.
The plastic sheeting cost for a 50-acre farm can exceed $20,000. Biodegradable sheeting does not require removal and disposal, as it is simply tilled back into the soil. There is some optimism that sheeting made from hemp will soon be developed. In Minnesota, a farmer estimated that harvesting the plants costs roughly $300 to $600 per acre. This cost has been declining considerably in recent years as more efficient methods are developed.
After harvest, the plant must be separated. This is often completed using a decortication machine that separates the components. Following decortication, the extraction is conducted to access the cannabinoids, flavonoids, terpenes, etc. Two of the most popular ways that extraction occurs include CO2 and ethanol.
A CO2 extraction machine is estimated to cost between $135,000 and $150,000. Also, there is at least another $20,000 in costs for an evaporator and centrifuge. After the cannabinoids and other substances are extracted, it is necessary to remove acids through decarboxylation. This is completed using an oven that costs approximately $5,000 to $7,000. At this stage, the oil is said to be in “full-spectrum” form.
To remove unwanted remaining properties, a distillation process is used. THC may be removed using a chromatography machine. The final product will have been tested, packed, and distributed for use.
Legal and Insurance
Companies operating in the CBD market may benefit from consulting with an attorney. This is important for compliance with volatile current laws and to navigate “gray” areas unique to working with cannabis plants. As with any organization, proper liability insurance should be maintained and is an additional cost which can influence the cost of CBD.
Some organizations that work in this industry may be restricted from taking credit card orders. Fortress Payment Technologies, a card processor, recently informed merchants that they are no longer offering Visa processing for CBD-related businesses. Meanwhile, Elavon, a division of U.S. Bank, announced they were going to be servicing this industry.
Companies involved in the cannabis industry have difficulty accessing traditional banking and credit services. A recent Forbes article explained that many such businesses have been Compliant: CBD producers must navigate the laws of their state. CBD producers that use hemp to produce their oil rather than marijuana are unlikely to encounter federal restrictions. Currently, CBD is not allowed to be marketed as a “dietary supplement.”
Price of CBD Oil for Pets
CBD products geared for pet usage is a rapidly emerging market. A CNBC article estimated sales in 2017 as being $8 million and it rose to $32 million in 2018. According to projections, the market could surpass $1 billion by 2022. The CBD oil for pet products are also likely to vary widely in overall quality.
Leading Producer of Full Spectrum CBD Oil
Cannafyl™ is an established manufacturer of CBD-infused products that are designed for both human and pet consumption. We have maintained a tightly controlled process of manufacturing that ensures quality and consistency. Our oils are of the highest quality and are thoroughly tested by independent laboratories. Visit our website or contact our office at (480) 599-1003 to purchase CBD oil or for additional information.