CBD producer sues Oregon hempseed company for $44 million over ruined crop

A Kentucky-based CBD company filed a $44 million lawsuit against an Oregon hempseed company, claiming the hempseeds it supplied were bogus and contributed to ruining the company’s 2019 crop.

Lexington-based Elemental Processing estimated it lost at least $44 million in profits after HP Farms of Troutdale, Oregon, allegedly supplied it with more than 6 million seeds that were mostly male instead of the feminized seeds it expected to be able to produce hemp crops for CBD production, according to The Oregonian and OregonLive.

The suit, filed last week in circuit court in Multnomah County, Oregon, said HP Farms entered a purchase agreement to provide Elemental Processing with 6.4 million high-quality, mature, feminized seeds with a CBD potency greater than 10% and a germination rate higher than 90%.

Elemental Processing made an advanced payment of more than $352,000 to HP Farms for the seeds, which cost 60 cents each, and agreed to pay $3.5 million more, or 15% of the proceeds from the flowers of the harvested plants.

It was only after the Kentucky company had distributed the seeds to the farmers and the crops had germinated that it realized the seeds were 70% male, Elemental Processing claims.

When it was determined the plants were male, the crops were destroyed to prevent the male seeds from pollinating other female plants in the vicinity.

HP Farms could not be reached for comment.

– Hemp Industry Daily and Associated Press 

3 comments on “CBD producer sues Oregon hempseed company for $44 million over ruined crop
  1. Senator Bill Dwyer retired. on

    Wait until next year. Oregon changes the way it counts THC. They don’t count THC A 9 this year. Next year they will count it all. Before you buy seed from anyone. Make sure you have a signed agreement in addition to any germination rate and sex guarantees of the projected plants that all seeds will be at or below the State and federal standards in the allowable percentage THC and pass muster, and that failure to pass State and Federal standards will result in a tort claim for damages. Legitimate seed growers that know their genetics won’t object.cyou may pay more,? but you are getting something useful. Good growing

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