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Crop Insurance for Hemp Producers

Posted By Administration, Monday, February 10, 2020

 

The U.S. Department of Agriculture is setting up a couple of pilot programs for crop insurance for  hemp producers. They’re going to help protect them from natural disasters.

One is through Multi-Peril Crop Insurance and insures against the loss of yield for hemp grown for fiber, grain or cannabidiol oil. The other program — via the Noninsured Crop Disaster Assistance Program — will protect against lower yields, crops that get destroyed for this reason or that, and disasters that prevent crops from being planted where no permanent crop insurance is available.

Hemp growers have until March 16th of this year to sign up.

The caveat is that the pilot program is only available in some counties in 21 states. Four of the states are PIA Western Alliance states:

  California

  Montana

  New Mexico

  Oregon

To be eligible a hemp producer has to have been producing a crop for a year or more. And the producer must have a contract to sell the insured hemp. Acreage comes into play as well. There must be 20 acres in production for grain and fiber and five acre for cannabidiol.

  55/55% basic coverage is available at 55% of the average market price for crop losses that exceed 50% of expected production

  Buy up coverage is available in some cases

The service fee per crop is $325 per crop or $825 per producer per county and will not exceed $1,950 for a producer with crops in more than one county.

Lastly, all growers must have a license to legally grow hemp and be in line with all of the regulations that applied on the state, tribal or federal level, or the grower can operate as part of a research pilot program for a state or a university as it applies to the definition provided by the 2014 Farm Bill.

Source link: Business Insurance

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