While banned for decades, passage of the 2018 Farm Bill allowed farmers to return an historic crop to their fields – hemp. More importantly, it made it legal for banking institutions to loan money to hemp-related businesses. But few have chosen to do so.

When the permitting process for Pennsylvania’s 2019 hemp program closes next month, more than 60 South Central Pennsylvania farmers will have permits to grow hemp this year.

Although Pennsylvania farmers are blazing a new path into the hemp industry, local banks and credit unions remain cautious in providing the businesses with financing.

Many of the Pennsylvania farmers who began growing hemp for research lost their crops to weather, mistakes in growing the product and government regulation – problems that other farmers jumping into the industry could also face.