Last year state and federal lawmakers passed legislation paving the way for the legalization of industrial hemp. Many farmers are experimenting with this new crop and it’s place in Illinois agriculture is expected to quickly grow in coming years. That said, there are still many unanswered questions for community bankers on the issue. What is industrial hemp? Who is allowed to legally grow and process it? How is industrial hemp different from cannabis in the opinion of banking regulators?
The FDIC and IDFPR assure us they are working on guidance for banking industrial hemp. In the mean-time, CBAI offers this preliminary guidance to help answer questions about the new laws. Additionally, we have obtained a list of entities licensed to grow and process industrial hemp in Illinois. This is provided as a means to verify that potential customers are in compliance with state licensing laws.
We hope to have clear guidance from regulators in the near future. We will share that with you when it becomes available. In the mean time if you have specific questions or concerns feel free to contact the CBAI governmental relations team for assistance.
CBAI Preliminary Guidance on Industrial Hemp
Please note that these links are password protected behind the Members Only section of CBAI's website. If you do not have a login and would like access to that portion of our website, please contact Stacy Workman at 217/560-3096.