CropLogic Limited (ASX:CLI) has just commenced its first hemp Biomass Shipment under an A$15 million contract.
The company had stated that the farm was "progressing on schedule," and the latest update confirms this, as CropLogic has just commenced its first shipment of hemp biomass – the starting point for CBD.
The supply agreement for the biomass states that CropLogic's wholly-owned subsidiary, LogicalCropping LLC, will supply biomass in weekly shipments at a total supply agreement value of A$15.4 million.
Croplogic has stated that the LogicalCropping hemp trial farm is designed to trial farming and cropping methodologies that will assist with the cropping of hemp at scale.
'The commencement of shipping of biomass is a significant milestone in the hemp trial farm', said CropLogic CEO James Cooper-Jones, 'this milestone caps off seed to sale story for the hemp trial farm and speaks volumes to CropLogic's agronomy, farm management, and agtech expertise.
On the progress of the hemp trial farm, CropLogic asserts that "the harvest is progressing well" and that "management and buyers have been pleased with the consistency of biomass material from the combine."
One of the major goals of LogicalCropping is to further refine CropLogic's suite of agricultural technology— primarily its software and hardware package—via the real-world use of its yield optimization platform. As part of the hemp growing trial, CLI's hardware technology will be used to monitor and track key crop metrics in real-time, such as soil moisture and irrigation levels.
CLI believes that the data generated from the trial crop will also be invaluable in helping CropLogic to better support the market, while revenue derived from hemp sales will be used to further the development of CLI's agricultural technology and support future product pushes.
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