Sutter County hemp ordinance establishes standards, annual fees
The Sutter County Board of Supervisors passed an ordinance this week establishing standards regulating the annual licensing of industrial hemp cultivation and processing facilities.
Under the ordinance, growers will now be required to pay an annual $500 fee to the Agricultural Department — a cost in addition to a $900 registration fee due annually to the California Department of Food and Agriculture required by state law. The ordinance will also require processors to
pay an annual $500 fee to the Development Services Department, as well as a
$500 fixed fee to the fire department for plan check and inspections and a $218 fee for any reinspection.
“The fees proposed are to pay for staff time to process and implement the license that the Ag Department will issue for cultivation, and Development Services would collect the fees for any processing facilities, so that would pay for staff time to review the application for the license, prepare to issue the license, any communication or issues, that’s what that is to pay for,” said Sutter County Principal Planner Doug Libby.
Sutter County currently has 18 businesses registered to grow industrial hemp within the unincorporated parts of the county, according to the California Department of Food and Agriculture. In 2019, Sutter County had 19 growers cultivating hemp on 1,587 acres, according to the most recent Sutter County Crop Report.
Justin Eve of 7 Generations Producers spoke to the board ahead of their vote this week. He questioned whether or not the implementation of the ordinance would impact his grow this year, which he said has already been set in motion. He requested a continuance to allow an ad hoc committee to review the fees and the process moving forward.
County counsel advised
Eve that he’d be better off deferring his planting until the ordinance is in effect, or it would be at his own risk considering growers have been noticed about the ordinance coming into effect.
Eve also brought up the state’s current dry conditions and how a water shortage could lead to rice farmers not planting a sizable portion of acreage this year, saying hemp only uses a portion of the amount of water needed for rice — one of the area’s leading commodities.
“So you’d be able to plant every single acre of rice in hemp this year if you were planting a different crop, and I think that’s our opportunity in this county,” he said.
J.R. Thiara of Hemp Guru, LLC said the fee structure isn’t equitable for growers because it will likely lead to an increase in costs added by the processors themselves, in addition to the fee growers will be on the hook for, and the growers get nothing out of the additional fees.
“The fees are not insurmountable, but these are new fees being added to an already $900 a year fee that we pay as growers, but
I’d really like to encourage you to consolidate this issue with the ad hoc committee so we can discuss those fees, the justification of those fees, and how they are going to be applied,” said Thiara, who is also a member of the Live Oak City Council.
The board first discussed establishing standards for industrial hemp in April 2019. A study session was held, but no actions were taken by the board to establish an ordinance, which meant industrial hemp could be treated as any other agricultural crop subject to complying with federal and state regulations.
In order to recoup costs associated with regulating the industry, the board introduced an ordinance in late March of this year.
The ordinance, which was officially approved at Tuesday’s meeting, establishes license requirements for both cultivation and processing, standards, protocol for destruction of noncompliant hemp crops, fees and cost recovery, and violations and remedies.
The ordinance will take effect 30 days after the date of its adoption, or in mid-may. The county plans to track costs and can make revisions to fees, as needed, in the future. Board Chairman Dan Flores said the plan is to have an industrial hemp ad hoc committee convene in May.