Industrial hemp industry making strides

Updated: Dec. 16, 2019 at 6:03 PM CST
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MANKATO, Minn. (KEYC) — One of the hurdles the industrial hemp industry has faced since becoming available to grow thanks to the 2018 Farm Bill is attaining insurance and financial assistance from banks.

The United States Department of Agriculture’s recent release of draft rules for the industrial hemp industry also allows states to submit their own plans for approval.

Minnesota is submitting its own plan and is open for comments from the public as they write it, and banking regulators are following suit to stay ahead of the growing industry.

A guidance that came the first week of December stated that banks are no longer required to file suspicious activity reports on those growing industrial hemp.

“There’s more to come. It was a big first step to attain financing to deposit your funds, to do some work with the community bank, now go in and give lenders some confidence as well that they are not getting crossways with the federal government," said Dave Ladd, president of the Minnesota Industrial Hemp Association.

A link to bring suggestions to the state for their draft plan regarding the industrial hemp industry can be found here.

Industrial Hemp Pilot Program

Read our FAQ to learn more about the 2018 Farm Bill and its legalization of hemp. Sign up for email notifications about the MDA's Industrial Hemp Program. The Hemp Research Pilot Program studies the growth, cultivation, and marketing of hemp.

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