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Cut Reeds is an item obtained by harvesting Reeds that grow in a Swamp. Reeds can be refined into Papyrus and are a crafting ingredient for a Blow Dart, Sleep Dart, Fire Dart and Pan Flute. Reeds grow back after 3 days from being picked, but they will not grow in Winter.
Reign of Giants
In the Reign of Giants DLC, there is an alternative method of getting Cut Reeds, by destroying Tumbleweed. There is a 1% chance of it dropping from the 3 possible drops. Also, a friendly catcoon can gift the player Cut Reeds.