Minnesota Native American community gets hemp fiber processing factory up and running

A new hemp fiber processing facility opened by a Minnesota Native American community will need to source hemp crops from outside of tribal lands to make the factory operate efficiently, according to a project leader.

Minnesota’s Lower Sioux Indian Community opened the decortication facility with a ceremony last week. The tribe said it intends to grow and then process fiber hemp into building materials to meet a shortage of about 100 homes on the reservation.

Former tribal council member Earl Pendleton, who has explored options for developing sustainable homes for the Lower Sioux community, said housing needs propelled the idea, but the prospect of economic growth and outside partnerships also spurred the project.

The facility is located in Morton, Redwood County, Minn., adjacent to the Sioux reservation in the southern part of the state.

Hemp farmers needed

Tribal leaders on the housing project told Minnesota Public Radio that the facility can process up to 2,500 acres of hemp annually. The tribe has only 500 tillable acres on its land and can grow only about 100 acres of hemp a year, Danny Desjarlais, a tribal member and manager of the hemp construction project, told Lancaster Farming.

“We don’t have enough acreage here in the community to be able to fulfill the need to build these houses,” Desjarlais said.

“We’ll always be needing the local farmers in the area to produce the hemp,” according to Pendleton. He envisions a circular economy model in which the tribe farms hemp and uses the hurd to build affordable, energy-efficient homes made of hempcrete for the Lower Sioux community, but also sells products outside of the reservation.

Multi-million $ project

The Star-Tribune reported the investment at $2.3 million in a 10,000-sq-ft facility.  

A report earlier this year by ENR Midwest, a regional business-to-business news website that covers the construction and engineering industries, estimated the project was to invest $6.2 million for a 20,000 sq ft facility. Desjarlais said the tribe has planned Phase 2 of the project to add another 10,000 feet to the factory.

The factory is financed by money the community raised from its existing hemp program, sustainability grants, and loans, including a $1.5 million grant from the Minnesota Department of Employment and Economic Development.

Desjarlais told the Star-Tribune the facility is probably “ahead of the market,” and likely will be unprofitable for the foreseeable future, suggesting the tribe will continue to depend on government grants until demand emerges.

First house is built

The tribe recently completed its first hempcrete house using materials from outside the reservation. The first two occupants have already moved into the duplex, believed to be the first of its kind in Minnesota. More dwellings are planned for construction in the next spring and summer months, Desjarlais said.

The Minnesota Lower Sioux Indian Community, also known as the Mdewakanton Sioux, is a federally recognized tribe whose lands are located near the Minnesota River. The 1,473-acre reservation is home to more than 1,100 residents. Farms on the reservation grow traditional crops such as corn, beans, and squash.

The tribe’s primary source of revenue now is Jackpot Junction Casino, a major employer that funds essential tribal services like healthcare, education, and social programs.