HEMP

In the 2018 farm bill industrial hemp was removed from the list of controlled substances and is now a recognized agriculture commodity in the United States. The 2018 farm bill also listed industrial hemp as a covered commodity for crop insurance and the Risk Management Agency (RMA) was instructed to streamline a process for developing hemp crop insurance policies.

We are hopeful for the release of a multi peril crop insurance (MPCI) policy for the 2020 crop year but we are still waiting to hear the outcome from the RMA. For the 2019 crop year there is no federally subsidized crop insurance for industrial hemp but there are several options through private carriers to implement a risk management plan for operations across the country.

Below are the perils that can be covered for the 2019 crop year:

1. Hail and Vandalism
   • $5,000 liability limit per acre
   • Rates vary depending on location
   • Deductibles vary depending on location
2. To wet to plant due to excessive rainfall
   • Customize coverage
   • Choose average rainfall trigger
   • The grower chooses amount of protection
3. To we to harvest due to excessive rainfall
   • Customize coverage
   • Choose average rainfall trigger
   • The grower chooses amount of protection