Processing Equipment Manufacturer Says U.S. Lacks Hemp Processing Needs

Hemp 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. The U.S. lacks roughly 90 percent 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. CBD is one of the fastest-growing consumer product segments, as 128,00 acres of hemp were planted this year, a 300 percent increase, now the hemp cultivation is legal. The 2018 farm bill legalized hemp for production, and the Department of Agriculture is working on guidance for hemp production and processing, due out later this year.