Cannabis Product News Hemp Production News

May 8, 2020
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

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