I planted a several gallon F. scabrida about 8 years ago in Zone 8 and it has grown very well. It is a bushy clump which is about 2' at the base, and about 6' in diameter at about chest height. However, it is only about 6' high and I doubt whether it will get to be 9'-12' high. You might want to consider another Fargesia that has a more upright form and is known to get taller. Your amount of space is probably ok, but you will need to take divisions off it a number of years hence to avoid it looking squashed up against the fence as it slowly expands its rhizomes outwards.

As far as dividing a 2-gallon plant, you might get away with splitting it in two, but any more than this could result in a bunch of dead divisions, and in any case dividing such a small plant will likely set it back several years.

This post was edited by kudzu9 on Sun, Aug 17, 14 at 16:57