The 2018 Farm Bill officially recognized Industrial Hemp as an agricultural commodity in the United States, removing it from the list of controlled substances. Upon approval of the new Farm Bill, Industrial Hemp also became a covered commodity under the Risk Management Agency (RMA). In February 2020, the USDA and RMA released a federally subsidized Multi-Peril Crop Insurance (MPCI) policy for Industrial Hemp. The release of this policy represented a watershed moment for the hemp industry and provided a useful starting point for risk management on hemp operations across the nation.
While we are excited about the opportunities this provides our producers, there are still some issues to work through. We are actively advocating for the removal of a few problematic qualifying factors, to make the product available to more producers in the 2021 crop year. For example, at this time hemp cannot follow acreage that was planted to any of the following in the prior year: cannabis, canola, dry peas, mustard, rapeseed, or sunflowers. In addition, hemp cannot follow acreage that was planted to soybeans in the prior year in northern states.
You can trust our team to keep you updated on all policy developments for the 2021 crop year and beyond. If you have questions about implementing a risk management plan for your hemp operation, contact us today!