What Hemp Growers need to know

Added on 28 April 2020

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Since the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed, hemp growers have wondered if and how they might be able to apply for federal assistance.

Caren Wilcox, Executive Director of the U.S. Hemp Growers Association, has some explanation and recommendations for these growers.

"The Small Business Administration (SBA) took the position on the CARES Act that Congress had not permitted all agricultural enterprises to be eligible for Economic Injury Disaster Loan (EID) or Payment Protection Program (PPP) funding," Wilcox says. "This was concerning to hemp growers. However, it is our understanding that the bill under current consideration would permit SBA to enable farmers to apply for aid. We do not know for sure the conditions or locations that our growers would have to go to, nor the paperwork they might have to provide. And we should caution that while the new bill apparently has safeguards to permit aid reaching smaller entities, the former act was fully subscribed very quickly. SBA has a site where it explains how to apply before the former funds ran out, and we presume it will update that site as soon as the new bill has passed.

"It would be wise for hemp growers to do as much as possible to prepare paperwork before the bill is passed by the House of Representatives and sent for signature to the President," Wilcox continues. She also notes that Agriculture Secretary Sonny Perdue plans to set up access to Commodity Credit Corporation (CCC) funds for growers who have been impacted by COVID-19 on their farms, specifically if they can show a 5% loss of business in the months from January 2020 to April 2020, or the period of COVID-19's impact in the U.S.

"If hemp growers can show such damage, they, like all other growers, should be eligible," Wilcox says. "We have no specific information about how those funds would be allocated or disbursed. We would recommend that growers go to Farmers.gov and be sure they have a Farmers.gov account and have used eAuth Account Registration to create an account for themselves and their operation. This would prepare hemp growers to learn about qualifying for and following USDA directions to make application for any aid that may be made available."