A hemp industry leader says farmers are worried about losses because of a lack of processing equipment.
Delta Separations, a manufacturer of hemp processing equipment, claims the holdup is because U.S. banks won’t make loans for processing equipment.
The company’s CEO says banks are “scared that the FDIC will penalize them for supporting anyone that has the word cannabis in their supply chain.”
Because of this, the company claims farmers fear $7.5 billion of hemp will be rotting in fields this fall.
Delta Separations says the United States lacks roughly 90% of the processing capacity needed for hemp.
Hemp represents a potential $8.5 billion market, according to the company, which says much of the potential is contributed to CBD oils.