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