Sounds like an update to the old Lovecraft story, "The Colour Out Of Space". That's essentially the plot, but it sounds like it's been altered considerably.
The Curse, aka The Farm, was a 1987 film adaptation.
A meteorite lands on the property of Nathan Crane (Claude Akins) and local physician Alan Forbes (Cooper Huckabee) is unable to explain why the rock keeps shrinking. He is dissuaded from contacting the authorities by Charlie Davidson (Steve Carlisle), a realtor who does not want the new arrival to discourage the Tennessee Valley Authority (TVA) from establishing a new reservoir in the area. As the rock shrinks away to nothing, a glowing color seeps out and into the ground. Within a few weeks, the farm's crops bloom but are soon discovered to be inedible. Shortly after, the local animals, as well as Nathan's wife, begin to go mad and a previously unknown element is discovered in the property's well. Soon Nathan and his son Cyrus (Malcolm Danare) are driven insane as well and begin terrorizing those who come to the farm, as well as the other children Zack (Wil Wheaton) and Alice (Amy Wheaton). In the film's conclusion, they are saved by TVA representative Carl Willis (John Schneider) and the house collapses into the ground. Compared to previous adaptations of the Lovecraft story this version has been considered a more faithful interpretation.
The worms get mention in one of the IMDB summaries:
.... The fruit and livestock become filled with maggots, cabbage and chickens become filled with green slime, and certain members of the farm family become swollen, slime-drooling mutants ....
The hand-sewing incident also occurs, although the previously linked video depicting it is no longer available.