South Dakota, the No. 1 producer of hemp fiber in the nation, gets a major addition to its hemp processing industry later this year that will help expand the state's capacity to grow and create products. But it comes as federal legislation tied to the reopening of the government seeks to change how the plant can be used, which some industry members said poses an existential threat to its growth.
It's representative of the growing two-sided hemp industry: one that produces goods like animal bedding, hemp wood and plastic, and another which creates consumable goods for humans and animals, some of which are intoxicating.
John Peterson, founder of Dakota Hemp, an industrial hemp farm near Wakonda, is nearly ready to open the state's second hemp processing facility. It's slated to begin operation by the end of the year and will have the capability to process hemp fibers and hurds into a variety of products.
At the farm, Peterson also grows cannabidiol, or CBD, plants, which create Dakota Hemp-branded CBD products like tinctures, lotions and pet treats, among other items that are sold throughout the state. Hemp farming remains popular in South Dakota, where adding a third row crop proves attractive to farmers looking for increased diversity in their income streams.
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