Hemp producers get even playing field, less red tape
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News from the Office of Senator Jon Tester
BIG SANDY — After months of efforts to expand banking services for Montana hemp producers, U.S. Senator Jon Tester announced that the Financial Crimes Enforcement Network has updated its guidance to expand financial services available for hemp businesses.
“Montana hemp farmers have been subject to unfair bureaucratic red tape that has prevented them from accessing the financial services they need to thrive,” said Tester. “I’m glad FinCEN did the right thing for Montanans and will finally allow banks and credit unions to treat hemp producers like the legal businesses they are.”
FinCEN’s expanded guidance comes after a sustained push by Senator Tester to even the playing field for Montana hemp farmers. Tester previously secured guidance clarifying the legal status of hemp growth and production so that banks are no longer required to file suspicious activity reports for customers solely because they grow or cultivate the plant.
Hemp was removed from the list of Schedule I controlled substances following the passage of the Agriculture Improvement Act of 2018, which permits producers to grow the crop. Last August, the National Credit Union Administration announced that it would provide financial services to legally operating hemp businesses and farmers. Last year’s appropriations package provided access to guaranteed loans for hemp producers and encourages hemp research and education.
