FARMERS HOPING TO BUILD HEMP PROCESSOR

DAUPHIN -- Last time farmers put their trust in a hemp processing plant,
the company folded and left growers holding $2 million worth of unsold fibre.

This time, farmers hope to build the processing facility themselves -- and
throw in the $2 million in hemp as down payment.

That's the plan for 55 farmers who haven't given up on hemp, despite a bad
experience when Consolidated Growers and Processors Inc. went out of
business in 1999.

"Right now, the hemp industry is in its infant stages. It's the canola of
20 years ago," said Joe Fedorowich, who heads up the group of growers.

Loan Sought

The growers have developed a business plan, with help from BM Associates in
Winnipeg, and are looking for bank credit. They are also seeking a
guaranteed loan from government. "I think the chances are good," said
Fedorowich. The facility could be up and running in 12 months.

"The way farming is going right now, traditional crops aren't going to
survive around here," he said.

The processing facility would cost about $15 million and employ seven
people, Fedorowich said. It's capacity would be about 75,000 tonnes.

Hemp fibre has gained acceptance for a number of products including highway
erosion matting and greenhouse pot lining.

The group of farmers have about 18,000 tonnes of hemp fibre, valued at
about $100 per tonne.

The hemp is non-narcotic marijuana with virtually no THC (the cannabis
narcotic).