Sho-Ban Tribes Agri-Business starts hemp growing pilot project
Board of Directors Chairman of the Agri-Business and Enterprises Sherwin Racehorse stands in the hemp field.
By LORI ANN EDMO
Sho-Ban News
FORT HALL — A new crop has been planted on the south end of the Fort Hall Indian Reservation that appears to be something one could get a high off of but can’t because it’s industrial hemp.
The Shoshone-Bannock Tribes Agri-Business Corporation planted 140 acres of industrial hemp in the Michaud Flats area. Sherwin Racehorse, Board of Directors Chairman of the Agri-Business and Enterprises, said the Agri-Business Corporation planted in a field where wheat was initially planted. They had to do a chopping operation to harvest it. There was some money made because of current wheat prices and they hired a contractor to do it.
He explained it’s a pilot project and they planted the hemp about three and half weeks ago. It’s about two feet tall now and by the time its harvested in late August, it could be 12 to 16 feet tall. The seed was purchased from Dun Agro for $17,000 – a company that originated in the Netherlands but is establishing its European operation in the U.S.
He explained the Tribal Agri-Business has attempted to get an agreement with Dun Agro. The Fort Hall Business Council initially approved a resolution for it but later rescinded it.
The issue involving the agreement is the company’s background, Monte Gray, tribal attorney said. He said the business is handled by a couple of people with no assets and had no financials of any sort. They are a liaison for an established company in the Netherlands called Dun Agro Hemp Group. Gray said he recommended against having the agreement because Dun Agro is a shell company.
However, Racehorse said the Agri-Business Corporation has done its due diligence in checking the company’s background. He explained Dun Agro has a multitude of contracts in Indiana and they’ve sought investors to build a hemp plant in Indiana. “We trust them,” he continued. The company is also providing technical assistance.
Hemp plant up close.
He said the Agri-Business Corporation is developing a harvest and purchase agreement with Dun Agro. Until that is approved, the hemp can be stored up to two years or it can be sold elsewhere.
They initially wanted to plant a thousand acres of hemp but couldn’t because of leasing and the short timeframe. The Agri-Business is licensed as a grower under the Shoshone-Bannock Tribes Hemp regulations and the USDA. The Tribal Enterprises is licensed as a seller of hemp products.
Concerning the seed, Racehorse said it’s genetically modified as an industrial type hemp product and very low in THC – it has to be 0.3% in order to pass inspection. He noted if people think they’re going to go out to the field and pick it to try and get high on it, “It’s not going to happen – all you’re going to do is explode your lungs and get no effect.” He said there’s already been people going out to the field and the farm manager has told them to leave.
Thirty days prior to the anticipated harvest, the crop will be tested and sent to a lab to evaluate the THC content. If it passes, a piece of equipment similar to a swather will be used to cut it. It chops it two ways – it takes the top off that flowers with resin and drops it into a bin. It also chops the stalk.
140 acres of industrial hemp was planted in the Michaud Flats area.
The hemp crop is novelty this year but in future years people are going to see increased hemp operations on the Fort Hall Reservation, Racehorse continued. “This is the first step – this pilot project – then move into negotiations on how to develop such a plant. We’ve approached the Land Use Commission and the Business Council has approved one primary site and two alternative sites for a hemp manufacturing site,” but they have issues of leasing. The Agri-Business Corporation is moving towards finalizing engineering conceptual designs initially that would lead to construction documents and getting a building application with the Land Use Department.
Regarding potential employment for tribal members Racehorse said upwards of ten people could be employed if more hemp is produced. If the production plant gets built there’s potential for 30 to 40 employees.
He said financing for the production plant to make hemp products could be with Dun Agro as they’ve offered funds to leverage it. The Agri-Business Corporation has resources here on the rez – the land itself and the water, he said.
The land the hemp is growing on is owned by the Tribes through a tribal lease. Racehorse said concerning the finances, “We are in a predicament where we are trying to develop economic development and create an investment portfolio,” he explained. They met with the Ameriprise accountant, who oversees the farm account the past Enterprise Board or council established more than 30 years ago. The farm account was driven through tribal lease monies. He said they will be meeting more regularly with the FHBC to discuss how they are going to finance the operation in the short and long term.
