‘It’s just gloom and doom’: Upstate hemp farmers struggle with low returns on big investments – Greenville News

'It's just gloom and doom': Upstate hemp farmers struggle with low returns on big investments - Greenville News



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Tom Garrison wants you to know he’s a realist, not a pessimist. 

But from where he stands – on the 1,000-acre farm his family has worked for 176 years – things are looking bleak. 

“I’ve never seen anything like this in my life, with the hemp crop …  and I’ve never seen a more depressed ag (agriculture) economy than I’m seeing right now. It’s just gloom and doom, man.”

In 2018, Garrison, who owns Denver Downs farm in Anderson, was one of the first SC farmers to be issued a hemp license.

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Tom Garrison looks at ground up hemp plants during harvest at the Danny Ford farm in Central on September 21.  (Photo: Ken Ruinard / staff)

“I just was trying to be an entrepreneur just like my dad was,” Garrison said.

Twenty SC farmers, three from the Upstate, were awarded the first round of permits by the SC Department of Agriculture to grow no more than 20 acres.

This year, that number doubled to 40 permits. 

Immediately, farmers like Garrison faced steep learning curves due to a lack of knowledge about the plant, high up-front costs, and a fledgling processing industry needed to get the crops onto retail shelves. 

Hemp: high maintenance and high costs

Hemp is a derivative of cannabis sativa, the plant that produces marijuana. Hemp is low in THC, a hallucinogenic chemical, but high in CBD, a chemical believed to have many medicinal purposes. 

Industrial hemp can also be processed for manufactured items, like fabric and car door paneling. 

The plant was heralded as South Carolina’s next cash crop when the state legalized hemp farming in 2018; the emerging $1.8 billion CBD industry offered promises of long-term success for family farmers. 

David DeWitt, who heads the hemp educational program at the Clemson Extension Program in Lee County, said he has heard the harvested crop selling to processors for anywhere from $15 to $60 a pound.  

Garrison said the average yield is about 750 pounds of hemp per acre, but that number can vary widely depending on how much of a crop makes it to maturity.

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Jordan Ford, left, Danny Ford, and his son Lee Ford look for any plant problems between cutting weeds between rows of hemp at the farm in Central in July. The Ford farm in Pickens County is one the South Carolina Department of Agriculture (SCDA) selected with 19 others to participate in the 2018 SC Industrial Hemp Pilot Program. “The famers represent 15 South Carolina counties. ‘The Industrial Hemp Pilot Program creates a new opportunity for South Carolina farmers to increase crop diversity,’ said Hugh Weathers, South Carolina Commissioner of Agriculture. Interest in the program was strong, and the Department of Agriculture worked diligently to select a broad representation of growers. Governor Henry McMaster signed H.3559 into law in May, making it legal for 20 South Carolina farmers to grow up to 20 acres of industrial hemp in 2018 for research purposes, in accordance with the 2014 Farm Bill.” (Photo: Ken Ruinard/ Staff)

But growing it is expensive: DeWitt says a single acre can take between $8,000 and $20,000 to grow.

Hemp seeds must be planted in pesticide- and chemical-free soil and crops must be weeded by hand. Extra security measures are typically required, as well, according to the SCDA website.

Since hemp was outlawed in the state for decades, farmers have to buy seeds from out-of-state sellers. Garrison bought seeds for this year’s crop from an Oregon retailer. The packet had a certificate of authenticity from the State of Oregon stamped on it.

The seeds did not take. So, Garrison said eight of this year’s 20-acre hemp crop will wind up in the bush hog, ground into hay, because of it.  

“It was bogus,” he said. 

Lots of ‘growing pains’ for emerging hemp industry

State regulations and backed-up processors keep farmers’ profits down, Garrison said 

State law mandates a 15-day harvest window for hemp. The shorter window leaves less time for CBD levels to rise, lowering the raw plant’s worth, DeWitt explained. 

Processors extract the CBD from raw hemp through a refinement process, which can be lengthy and expensive, DeWitt said. 

The influx of SC hemp growers has overwhelmed many local processors, causing a backup of product, according to Garrison, who said he had to wait months for payment after his processor did not refine his crop last year. 

“But there’s not any of my crop leaving my farm this year unless I got money in my hand,” he said. 

Garrison added that the processing industry in SC is still in startup mode. He said many of the new businesses popping up across the state have to get infrastructure and machinery in place before any work can begin. 

The SCDA is finalizing new hemp guidelines for 2020, to be added in the Farm Bill. Garrison, who heads an advisory board on hemp farming for the SCDA, is hopeful the changes to the bill will put checks and balances into place to protect farmers.

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Tom Garrison, left, of Denver Downs Farm in Anderson, good friends with farmer Danny Ford, middle, shakes hands with Hugh Weathers, right, State Commissioner of Agriculture, during hemp harvest at the Ford farm in Central on September 21. Weathers has been visiting the first 20 hemp farms around the state to see how each is processing their plants.  (Photo: Ken Ruinard / staff)

“But until all the kinks get worked out and all these bad players fade into the sunset, it’s going to be a lot of growing pains.”

Eventually, Garrison said, he thinks hemp will become profitable. He’s not sure how long that will take, though. 

“I hope I live long enough to see it come to be a profitable crop. Who knows? It may end up like tobacco; It may be a contract crop, it may be a quota crop.”

A quota crop is one where the government restricts how much a farmer can produce.

Garrison said he’s probably the last of his family to farm the land his ancestor, W.D. Garrison, settled on in 1843.

But for now, he’s forging ahead.

“I’m optimistic that farmers are smart enough to figure this out. Yeah. And even though a lot of people have been taken advantage of, that’s not gonna last much longer.”

Zoe covers Clemson for The Greenville News and Independent Mail. Reach her at znicholson@gannett.com or Twitter @zoenicholson_

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