Hemp Farming: Avoid Dispute By Legal Counseling Before Disputes Arise


Hemp Farming: Avoid Dispute By Legal Counseling Before Disputes Arise

Not too long ago, no activist would have imaged the rapid growth rate in the Hemp industry.

Farming is being done on thousands of acres of land. The increase in the amount of CBD extracts is forcing the processors to adding warehouse space to accommodate. Everyday retailers are popping up so quickly, with this increase in number poor hemp reporters (like us!) have a hard time formulating even a rough guess of how many places are selling hemp products.

But there’s a darker side of this go-go hemp industry.

With the ever-evolving products line, announcements and merger deals, lawsuits and legal disputes are popping up just as quickly.

The disputes vary, but one common thread stands out: Hemp entrepreneurs are trying to get rich without retaining legal counsel.

However, it does makes sense. For the last couple of decades, the hemp industry was so small that hemp business owners all knew one another.

When a new business opportunity emerged, the sizzle could be easily separated from the steak by asking around about the person behind the new venture.

But hemp is now too large of an industry. And the industry is being held back by legal disputes that could have been avoided, a smart lawyer to look over the deals and make secure agreements.  

Few Cases:

  • A Vermont landowner hoped to save a family farm by allowing a hemp entrepreneur to grow hemp on her land. When the landowner didn’t see the profits she wanted, she sued – while admitting she had nothing in writing to back up what she says she was promised.
  • A California marijuana company contracted with a Colorado firm to produce 600 acres of CBD rich hemp. The California business said it found out later that the Colorado company “had no idea what it was doing and had never planted industrial hemp intended for CBD production,” according to its lawsuit.
  • A California plant breeder claimed to have developed a non-cannabis source of CBD, then entered a distribution agreement with a large CBD company. The relationship soured within weeks, with no rollout of the tantalizing product.

Every week we have a new lawsuit hitting the hemp industry. Every lawsuit has social media activist all over the implications.

The market which is not regulated strictly, attracts some bad apples to take advantage over the potential profit market share. Anyone can claim that he’s the market leader and primer operator.


With some due diligence such lawsuits can be dealt differently. Liars and cheats are being penalized, and the government has set up a dedicated department which only deals in these cases. As long as hemp companies complies with state and federal laws, it has full access to judicial relief.

It is hard to believe but companies don’t hire lawyers before signing and formulating any deal. It could lead to a complicated legal matter if not taken into full consideration by a legal firm.

We are not lawyers or we’re not getting any kickbacks but your hemp company should hire one!

Hemp Oil is a multimillion-dollar industry. With the inclusion of a lawyer we believe this industry has potential to grow even further. Lawyers not only help you in court but they can help you stay out as well and let you focus on being the hemp guru that you are meant to be.

This is an abridged version of a column that appears in the November-December issue of Marijuana Business Magazine.

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