FSA Guidance For Direct, Guaranteed Loans For Hemp Growers
The USDA Farm Service Agency (FSA) recently issued guidance for servicing Direct and Guaranteed loans for hemp growers.
There are a few key points that were included in this document:
- Confirmation that hemp is considered an agricultural commodity, and should be treated like other commodities
- To qualify, growers may be licensed under either the 2014 or 2018 Farm Bills, and must meet the requirements of the relevant law
- Note: In NC, we are still operating under the pilot program, which was authorized under the 2014 Farm Bill
- A written contract is required in order for hemp income to be included in projected cash flow
- An exception to this requirement may be made if the grower can demonstrate cash flow without hemp
- Farm Business Plans (FBP) need to be based on standard production budgets
To read the full guidance document, click here.
Source: Marne Coit, agricultural law lecturer, North Carolina State University