ALEXANDRIA, Va.—NCUA Board Chairman Rodney Hood expanded on the agency’s recently published interim guidance allowing federally insured credit unions to provide certain financial services to legally operating hemp business in an op-ed in the Lexington Herald Leader.
Kentucky is ranked among the top 10 hemp producing states in the country, and was a major producer of hemp in the 19th through the mid-20th centuries. The state has encouraged hemp production as the number of acres dedicated to tobacco has steadily declined.
In his op-ed, Hood explained the agency’s recent decision, but also again said it continues to wait on the Department of Agriculture to act.
"The decision to legalize hemp production represents a significant step forward that will make a real difference in rural communities," wrote Hood.
Waiting on USDA
“Recently, my agency issued interim guidance to all federally insured credit unions that makes it clear they may offer the customary range of financial services for business accounts, including lending, to legal hemp-related businesses. In doing so, we sought to determine what form the constructive framework could take to assist legal hemp businesses that need access to capital and financial products,” continued Hood. “This common-sense step will help increase access to capital for legal hemp growers and entrepreneurs in the short term. However, the NCUA’s interim guidance is only a first step.
“For the future, we look forward to the USDA’s forthcoming regulatory framework for hemp production. The department has indicated these rules will be in place in time for the 2020 planting season. After the USDA releases its regulatory framework, you can count on the NCUA to quickly issue guidance for credit unions that incorporates these new rules and any other noteworthy developments in this exciting new industry,” wrote Hood.