We got the following comment as a result of yesterday’s blog post:
“My banker informed me that if any of their customers are growing hemp, that they will close all their accounts.”
That sentiment is still out there for many banks. However, I must admit if I had a banker tell me that, I may be looking for a new banker or at least find out what causes the banker to say that.
Many banks, especially if they do not specialize in Ag Lending may not be aware that Hemp is now a legal crop and is to be treated just like corn, wheat or soybeans. This assumes that the farmer is licensed correctly by the state and follow the rules.
We find that many banks just don’t want the hassle even if it is legal. Others are waiting for additional regulations to be issued which the new proposed regulations from USDA issued earlier this week will help in that area.
Other banks are already actively providing loans and banking services to the hemp industry including several larger national banks.
It may be prudent to put your hemp operations into a separate legal entity. This entity would only deal with hemp activities and if the bank does decide to close the account, it only affects one account.
However, this is certainly in a state of flux and it may take time and effort to get the banking industry fully engaged and accommodating.
