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Published 5:00 pm Friday, January 14, 2022
EAGLE POINT, Ore. — Jackson County Code Enforcement is fining a Southern Oregon cattle and hay ranching couple $150,000 for land use violations committed on their farm by an illegal marijuana grower who allegedly posed as an industrial hemp grower when he leased their land.
The couple, Jerry Wetzel, 78, and Gloria Wetzel, 76, plan to appeal, saying they did not know the tenant lacked licenses and that the tenant claimed to be growing legal hemp.
Land use experts say cases like this are common statewide, especially in Southern Oregon.
According to Jackson County Sheriff Nate Sickler, the county is “finding many land leasers have been less than honest with the property owners about what they are cultivating, as well as what permitting and licensing have been obtained.”
“Sometimes landowners know exactly what they were doing and then try to put all the blame on the growers. Other times, it’s clear the landowners are clueless,” said Roger Pearce, land use attorney and Jackson County hearings officer.
Whether landowners knew they were leasing to an illegal operation or not, Pearce and Sickler say they may be liable for violations under state and county law.
In the Wetzel case, according to Jackson County public records, on June 10, 2021, Oregon State Police raided the Wetzels’ home after obtaining a search warrant.
Officers entered the house with guns drawn, searched for evidence and seized property. The Wetzels say they were frightened while handcuffed for about four hours.
“They searched this place from top to bottom,” said Gloria Wetzel, her eyes watering.
During the raid, the tenant and his workers fled the approximately two-acre grow site leased from the Wetzels far from the couple’s residence.
Using equipment designed to detect THC levels, Oregon State Police determined the operation was growing marijuana.
Mark Taylor, founding board member of the Southern Oregon Hemp Co-Op, said he knows the Wetzels to be “honorable people” and said he feels it was inappropriate for officers to raid the home of the landowners rather than targeting the tenant’s grow site.
Taylor said he is also upset that the couple is being fined for violations committed by the lessee.
“The whole case smells of government overreach,” he said.
Jerry Wetzel said that when he and Gloria started leasing acreage to someone they thought was a hemp grower in 2020, they knew hemp was legal in Oregon but did not know operations required permitting. Thus, they didn’t ask to see permits.
The illegal grower, at his own expense, constructed 54 greenhouses and installed electricity, also without permits. The lessee, Jerry Wetzel said, told him the structures were temporary.
“We weren’t told to ask for a license to prove it’s legal hemp or legal greenhouse(s),” he said.
When the growers fled, the Wetzels were stuck with the fine.
The Wetzels say they believe laws that punish landowners regardless of intent for the actions of their lessees are unjust.
Annick Goldsmith, the hemp co-op’s small farms adviser, said she believes the county shouldn’t “cast such a wide net that (it) victimize(s) people like Jerry and Gloria.”
Land use experts, however, say liability laws placing the burden on the property owner are standard.
“It’s pretty straightforward. In most cases, ultimately the person who owns land is responsible for compliance with all laws that deal with the use of that land,” said Jim Johnson, land use and water planning coordinator for the Oregon Department of Agriculture.
Pearce, the attorney, said landowners may be held liable for state and county violations, potentially for pollution, illegal water uses, construction of unpermitted structures and failure to register farm labor camps.
Sickler, the sheriff, said landowners should verify an operation is legitimate “to prevent a criminal organization from setting up shop in our county.”
The Wetzels, who received $150,000 in rent between March 2020 and April 2021, say they thought they had taken sufficient precautions because they were not business partners of the tenant and had worked with an attorney to create an agreement in 2020 to protect the farm’s interests. The lease stated no illegal activities would be allowed.
Now, the Wetzels say they wish they had also known to ask for permits. They, along with Taylor of the co-op, advise landowners to check permits, conduct a background check, ask for an up-front security deposit and engage a seasoned real estate attorney before leasing to hemp growers.
”If it sounds too good to be true, it is. If someone wants to rent your piece-of-garbage pasture for $50,000 per season, you’re very likely to get dragged into trouble,” Pearce said.