USA’s GenCanna hit with one more lawsuit, this 1 from farmers


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Kentucky-primarily based hemp giant GenCanna Worldwide Inc. has been hit with one more lawsuit, this 1 from disappointed farmers who say they had worked satisfactorily with the Winchester-primarily based corporation considering the fact that 2014, when GenCanna initial supplied them hemp seed.

The legal action by Furnwood Farms in Kentucky’s Harrison County comes immediately after a group of building and other contractors lately filed liens against the home owner at the web-site of a planned new GenCanna processing factory in Mayfield, Kentucky. The contractors claim in their lawsuit that GenCanna owes them $13 million.

Expansion proposal

Furnwood partners Kendall Henson and Ben Furnish told neighborhood tv station Lex18 in Lexington that the difficulty began when GenCanna approached them in 2018 about drastically expanding hemp fields this year by arranging contracts with other farmers and setting up drying facilities. 

“We as Furnwood would come up with 500 acres of farmers, to develop 500 acres worth of hemp, but we would also take it a step additional and dry for GenCanna,” Furnish told the station. 

Furnwood Farms and GenCanna had grown 76 acres of hemp in 2018 which netted the farmers $1.eight million. According to Furnwood’s lawyer Scott White, the substantially expanded deal GenCanna proposed represented as substantially as $15-$20 million, so the farming corporation began to line up contract farmers. 

Queries more than seed good quality

But the Furnwood partners mentioned the agreement was stalled and that it was late June just before GenCanna supplied seeds — which Furnwood says had been of low good quality. Meanwhile, the farmers say, terms discussed at the outset of the deal had been changed by GenCanna in subsequent draft agreements. 

“In order for us to get plants to go into the ground with, we had to sign the agreement,” Furnish mentioned. “It was also late in the year for us to obtain one more supply for that.”

Deal is known as off

But Furnwood says GenCanna known as off the deal in late August, placing the corporation at threat of losing millions of dollars this year. The quantity of damages claimed by Furnwood against GenCanna are as but unclear.

In a statement to LEX 18, GenCanna declined to comment about the lawsuit itself, but mentioned “we are confident in our position with farmers across the Commonwealth and will prevail in this lawsuit.”


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