The USDA Risk Management Agency is strengthening the hemp crop insurance policy by adding flexibility on how growers work with processors and improving consistency with the latest USDA hemp regulation.
“Hemp is an emerging crop and we are working with hemp growers to provide insurance options that make sense for growers and insurance providers,” said RMA Administrator Marcia Bunger.
RMA revised the policy to add flexibility to hemp insurance requirements under contract. Producers are no longer required to deliver hemp without economic value to insure themselves. However, contracts between producers and processors may still include delivery requirements. In addition, RMA clarified how the amount of insurable area is determined if the processor contract specifies both an area and a production amount. This change was made to the policy to ensure that producers know how their insurable area is determined for these contracts.
Other updates
To ensure consistency with the USDA, RMA updated the regulatory references, including the final rule of the Agricultural Marketing Service, which went into effect on March 22nd.
In addition, RMA added a new requirement for producers growing direct seed hemp or hemp grown from seeds planted in the ground. Prior to insurance, growers must inspect the area and have a minimum of 1,200 live plants per acre. This requirement was added to align direct seed hemp with the common agricultural practice for transplanted CBD to transplant at least 1,200 live plants per acre.
About hemp politics
The hemp crop insurance policy provides coverage of actual production history against loss of yield due to insurable loss causes for hemp grown for CBD fiber, grain or oil. The Farm Bill defines hemp as containing 0.3% or less of THC on a dry weight basis. Hemp that has THC above the 0.3% federal compliance level is an uninsurable or ineligible loss cause and will make hemp production ineligible for production history.
Hemp crop insurance policy is available in certain counties within 25 states: Alabama, Arizona, Arkansas, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, Nevada, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia and Wisconsin.
In 2021, hemp growers secured 12,189 acres and 59 policies to protect $ 10.9 million in liabilities.
Another hemp cover
In addition to the APH crop insurance policy, hemp coverage is available through Whole Farm Income Protection, the nursery crop insurance program and the pilot crop insurance program. Nursery Value Select. In addition, coverage for the Unsecured Crops Disaster Assistance Program, which is offered through the USDA Farm Services Agency, protects against losses associated with lower yields, destroyed crops, or the inability to plant when no permanent crop insurance program is available.
The Agricultural Law of 2018 reclassified and legalized the regulated production of industrial hemp as an agricultural commodity. Hemp growers can learn more at farmers.gov/hemp.
More information
Crop insurance is sold and delivered only through private crop insurance agents. A list of crop insurance agents is available at all USDA service centers and online at the RMA Agent Locator. Learn more about crop insurance and the modern agricultural safety net at www.rma.usda.gov.
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