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USDA begins multi-peril hemp insurance pilot program

USDA’s Risk Management Agency has announced a new crop insurance option for hemp growers.  The pilot insurance program will provide Actual Production History (APH) coverage for eligible producers in part or all of 21 hemp growing states including Illinois, Indiana, Kansas, Kentucky, Michigan, Minnesota, Tennessee and Wisconsin.

The multi-peril coverage is for hemp grown for fiber, grain, or CBD oil during the 2020 crop year, and is in addition to Whole-Farm Revenue Protection coverage announced earlier.

Rob Richard with the Wisconsin Hemp Alliance says growers really need this. “This is really going to help the smaller grower that’s probably the second-year grower that has a short history of growing hemp. They will now be eligible for the crop insurance, so this is really going to help a lot of hemp growers out there, not only in Wisconsin but throughout the country.”

But Richard wants to see the details of the pilot insurance plan to make sure it covers 2020 growers operating under state program rules, like Wisconsin. “I’m curious as to whether those farmers would be able to keep that multi-peril coverage if it’s at 0.39% or less (THC content) under Wisconsin law of if they really have to abide by the new USDA line of 0.30% or not.”

In announcing the new program, USDA says producers must be in compliance with their state hemp program, have at least one year of hemp production history, and have a contract for the sale of the insured hemp crop.

USDA says starting in 2021, hemp will also be insurable under the Nursery crop insurance program and the Nursery Value Select pilot crop insurance program.

RMA Administrator Martin Barbre says as a pilot insurance program, the agency looks forward to feedback about the program in the coming crop year.