While the 2018 Farm Bill reclassified hemp as a legal agricultural commodity, banks still face challenges in serving hemp producers and hemp-related businesses, the American Bankers Association said today in a statement submitted for the record of a Senate Agriculture Committee hearing.
The association noted that while banks want to serve producers in their communities, “they need clear, unequivocal assurance from their regulators that hemp is distinguishable from cannabis.” ABA also called for additional guidance regarding retail products containing hemp or hemp-derived CBD and advocated for the creation of a crop insurance program for hemp production.
The testimony follows an appeal ABA made to the banking agencies in June urging them to issue a formal statement clarifying regulatory expectations around hemp banking.
