Why is Banking so Difficult for Hemp Farmers?

Lancaster Farming Industrial Hemp Podcast

Hemp farmers have had a notoriously hard time when it comes to finding reliable financial services. Many hemp farmers can share stories of being dropped from a bank with very little notice when their bank got skittish about hemp.

The reason for this, says West Town Banks executive vice president and chief operating officer Melissa Marsal, is that bank regulators see hemp overall as high risk business, and therefore hemp companies get lumped together with other so-called high risk businesses like private ATMs, internet gambling and alcohol and tobacco.

Banks are required to perform extra due diligence when getting to know potential customers in these risky sectors, and many banks just don’t see the value in the extra work and have simply turned away from the hemp industry.

The banking and hemp industries are patiently waiting for the SAFE Banking Act to pass Congress, which would make it a whole lot easier for everyone involved.

In this interview, Marsal talks about her experience working with hemp farmers and the things hemp farmers have had to resort to in lieu of reliable banking. She talks about what hemp farmers need to consider when looking for a bank, and what kinds of questions they should be prepared to answer when they’re in discussions with a bank.

West Town Bank

https://www.westtownbank.com/business/industry-solutions/hemp/

News Nuggets

Study: No evidence of liver toxicity from use of CBD from hemp

https://www.clickondetroit.com/health/2021/04/06/study-no-evidence-of-liver-toxicity-from-use-of-cbd-from-hemp/

U.S. Hemp Seed Production Increasing

https://www.newsdakota.com/2021/04/06/u-s-hemp-seed-production-increasing/

Far fewer Wisconsin hemp licenses have been issued, so far

https://brownfieldagnews.com/news/far-fewer-wisconsin-hemp-licenses-have-been-issued-so-far/

Alabama Senate to consider amendment potentially harmful to Alabama hemp industry

https://www.alreporter.com/2021/04/05/senate-to-consider-amendment-potentially-harmful-to-alabama-hemp-industry/

Sen. Rand Paul Reintroduces HEMP Act to Congress

https://www.hempgrower.com/article/hemp-act-reintroduced-kentucky-usda-thc/

New York marijuana law makes sweeping changes to hemp rules, too

https://hempindustrydaily.com/ny-marijuana-law-makes-sweeping-changes-to-hemp-rules-too/

Program aims to increase hemp awareness

https://pennbizreport.com/news/19468-program-aims-to-increase-hemp-awareness/

Anything but CBD - The Real Opportunity in Hemp

https://www.nutraingredients-usa.com/News/Promotional-Features/Anything-but-CBD-The-Real-Opportunity-in-Hemp

Making Hemp Milk Is Easier Than You Think

https://www.motherearthnews.com/real-food/making-hemp-milk-is-easier-than-you-think-zbcz2104

Hops and Hemp

https://www.greenstate.com/culture/hops-and-hemp-cannabis-cousin-pairs-well-but-which-beer-is-best-with-weed/

About That “Skunky” Cannabis Smell

https://hempgazette.com/news/skunk-smell-cannabis-hg1410/

Podcast Archives

Interview with DON Services

https://www.lancasterfarming.com/community/podcasts_and_audio/don-services-building-a-future-with-hemp/article_c0c12a38-1ed3-11eb-9638-9fba138debee.html

Interview with Judy Wicks from All Together Now Pennsylvania

https://www.lancasterfarming.com/community/podcasts_and_audio/importance-of-local-supply-chains-in-the-face-of-global-pandemic/article_d2952098-6ecf-11ea-a715-bb449ca2df1c.html

Interview with Kelly Kundratic from Team PA

https://www.lancasterfarming.com/community/podcasts_and_audio/the-ebb-and-flow-of-harvest-season/article_98b5ce48-5266-11ea-ac19-9f049c81f721.html

Many Thanks to our Sponsor IND HEMP

https://www.indhemp.com/