Hemp, Inc., a global leader in the industrial hemp industry with bi-coastal processing centers, announced The National Credit Union Administration (NCUA) will allow hemp businesses to receive banking services from credit unions. This change in guidelines from the NCUA signifies the acknowledgment of the crop’s potential and the role credit unions can play in the growing industry.
“The continued growth of the hemp industry has opened the eyes of many federal organizations and it is exciting to see the National Credit Union Administration recognize the potential of this crop,” said Hemp, Inc. CEO Bruce Perlowin. “This update has the ability to change the industry, change lives and help businesses in this industry truly flourish. Since the Farm Bill 2018 passed, the industry has needed capital and financial services from reputable organizations and these updated regulations give the industry just that.”
Historically, many credit unions have provided services to agricultural businesses. The administration hopes the updated regulations will encourage credit unions to incorporate legally operating hemp businesses. Services offered can include accounts and loans for hemp businesses within the company’s field of membership.
The interim guidance from federally insured credit unions will provide hemp businesses with the customary financial services credit unions provide. The NCUA noted that regulations will be updated after the United States Department of Agriculture releases its rules for the hemp industry. The rules are expected to be announced prior to the 2020 planting season.
The hemp industry is expected to jump from $1.1 billion in revenue in the year 2018 to an estimated $2.6 billion by the year 2022, according to New Frontier Data.
According to Hemp, Inc. executives, The Great American Hempathon in Golden Valley, Arizona, which created joint ventures with growers, is no longer being promoted. Hemp, Inc. CEO, Bruce Perlowin, commented that the Hempathon got off to a late start. “The state of Arizona was late issuing licenses to grow hemp due to the overwhelming number of applications that they received. I think they expected dozens but received a couple hundred. Our Hempathon did have four participants though,” said Perlowin.
According to Perlowin, the company will start The Great American Hempathon much earlier next year so everyone can plant on time to ensure the success of the planting. In the meantime, special plots have been built out with better camera angles for recording and/or live streaming. Soil amendments, nutrients and microbes will be tested to see which commercial products work the best with industrial hemp. The land will be prepped starting next month.
The article, Growing Pains: Arizona farmers struggle with their first hemp crop, published August 22, 2019, sheds some light on what some Arizona farmers have been struggling with trying to plant hemp in Arizona. One farmer, who has been farming for 40 years, stated, “It isn’t going well, with the fledgling plants overmatched by relentless heat, weeds, and bugs. The success rate has been pretty low." He continued saying, “We've learned a lot of what not to do, and we will not repeat that in the future, but I think the crop has a great future in Arizona." There’s always a learning curve and Perlowin is optimistic next year will be a success.
Hemp, Inc.’s grows in Oregon and North Carolina are doing extremely well. Specifics, in terms of numbers, will be reported in a future press release. Perlowin did mention, however, that he expects revenues to be in the “multi-millions”.
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