Oregon hemp farm suing processors for $11 million

A farm in southern Oregon is suing a group of processors who they say failed to show up and harvest and process its hemp after receiving a six-figure down payment.

Jefferson State Farms of Medford, owned by Ben and Kathleen Yuma, is suing:

• Palex Enterprises.
• Hemp Warehouse.
• Great Horizons.
• Four individuals.

The lawsuit, claiming civil fraud, unlawful trade practices and breach of contract, seeks more than $11 million, according to the (Medford) Mail Tribune.

Jefferson State Farms says the defendants were paid $136,000 to harvest their crop of 112,500 hemp plants beginning Oct. 9, 2019.

After confronting the companies, the Yuma say, they received $50,000 back from the companies but never received the final $86,000 of the down payment, despite promises of repayment.

Jefferson State Farms wants to collect the outstanding $86,000 that they paid, plus $200,000 to reimburse replacement harvesting and drying services and $11.2 million for “consequential damages” for the crop, the newspaper reported.

The case is pending in Jackson County Circuit Court.

Jefferson State Farms alleges its crop, which would have been worth $11.2 million, was sold as combined biomass for $10 per pound after the crop rotted in the field.

More details about the lawsuit are available here.