Illinois – Hemp, The Farm Bill, and Their Impact on Ag Lending
For growth-minded institutions, the recent legislation for cultivating hemp in the US with the implementation of the 2018 Farm Bill may shed light on a new opportunity for financial institutions regarding the banking and servicing of hemp-related businesses. But the changes tied to the Farm Bill also bring increased risks for banks and credit unions who take on these clients. The Illinois Treasurer’s Office introduced the Banking Options for Legal Cannabis-Related Businesses Act in February 2019 to provide protection within the Illinois state banking laws for institutions that provide services to cannabis-related businesses (CRBs), including hemp-related businesses. In this paper, Abrigo experts outline some of the critical questions that institutions can use to begin evaluating the potential value – and risk – to the institution in taking on CRBs or hemp-related businesses.
Download to learn:
- How to evaluate the opportunity
- The impact of the Farm Bill
- The differences between cannabis, marijuana, hemp, and cannabinoids (CBDs)
- Potential risks of taking on these banking relationships