Last December, President Trump signed the Farm Bill, legislation that removed hemp from the Federal government’s list of Schedule 1 controlled substances and made it legal to cultivate industrial hemp. Hemp is known for producing cannabidiol (CBD), a compound that has left the medical, health and wellness communities, and the world at large in awe of its powerful medicinal properties. The bill allowed farmers to capitalize on this emerging market, but the industry is still unregulated, and these eager farmers are suffering because of it.
Maine hemp farmers Taryn and Ben Marcus, are the latest victims of the industry’s current state of uncertainty. On Friday, the couple’s bank, Camden National, called to say it was closing their farm’s bank account. They also recalled a $12,000 equipment loan they had issued to the couple for a produce cooler. This bad news came after their insurance carrier Acadia Insurance canceled the policy covering their 180 acre Uncas Farm, the couple’s home and Sheepscot General Store, the farm’s general store.
The hemp farmers were left in distress, “We tiptoed out of the dark woods of prohibition, guided by our elected officials, and Wham, we get run over by everyone’s other favorite institutions – banks and insurance companies. We were completely blindsided. What’s the point of legalizing hemp if we can’t farm it?” they wondered.
Connecticut based W. R Berkeley, the parent company of the Marcus’ insurance carrier, said that the insurance company doesn’t comment on an individual client’s policies. It also refused to answer questions about its current hemp policies. But, according to Taryn Marcus, the company has given them till November 19 to find a new carrier before they pull the plug.
Renee Smith, a marketing officer at Camden National, refused to discuss the Marcus’ particular case. Still, she said that generally, although growing and selling hemp is now legal, banking regulators have offered no guidance on how to ensure they are following the new federal law. She adds that, “The problem between these small businesses and us is that we don’t have guidance on how to bank businesses like that. We want to help them grow, but we’re kind of caught in this middle ground.”
Word of their troubles reached Gov. Janet Mills and Maine Agriculture Commissioner Amanda Beam, and they sent a letter to the U.S. Department of Agriculture on Tuesday, asking it to finalize federal guidance and regulations for commercial hemp production.
Currently, the United States Department of Agriculture (USDA) is working on hemp regulations, and they are expected to be published sometime this fall. Afterward, each state will have to submit its own plans for USDA approval. The State of Maine is currently waiting for the USDA rules before deciding what to do.
Experts are of the view that the entire hemp industry, including companies like The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF) and Neutra Corp. (OTCQB: NTRR), must be dismayed that the owners of Sheepscot General Store who shot to fame by pioneering the “pick-your-own hemp” model now stand to lose everything as a result the actions of their bankers and insurance providers.
About HempWire
HempWire (HW) is a dedicated information provider focused on (1) aggregating hemp-related news, (2) issuing HempNewsBreaks designed to update investors on the latest developments in the hemp market, (3) enhancing corporate news releases, (4) providing full-service distribution and social media offerings to public and private client-partners and (5) designing and implementing all-inclusive corporate communication solutions. HW is strategically positioned within the rapidly expanding hemp sector with a team of journalists working to help a growing roster of public and private companies reach a wide audience of investors, consumers and members of the media. We leverage a vast network of more than 5,000 key syndication outlets to deliver unparalleled visibility, recognition and content to the hemp industry. HempWire (HW) is where HEMP news, content and information converge.
To receive instant SMS alerts, text HEMPWIRE to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.hempwire.com
Please see full terms of use and disclaimers on the HempWire website applicable to all content provided by HW, wherever published or re-published: https://www.hempwire.com/Disclaimer
Do you have a questions or are you interested in working with HW? Ask our Editor
HempWire (HW)
Denver, Colorado
www.hempwire.com
303.498.7722 Office
Editor@HempWire.net
