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Print articleUSDA Announces Pilot Crop Insurance Program for Hemp Farmers
December, 2019 -
To be eligible for the crop insurance pilot program, a hemp producer must:
- comply with applicable state, tribal or federal regulations for hemp production
- have at least one year of history producing the crop
- have a contract for the sale of the insured hemp
Producers also must be a part of a state or university research pilot, as authorized by the 2014 Farm Bill, or be licensed under a state, tribal or federal program approved under the USDA Agricultural Marketing Service (AMS) interim final rule issued in October 2019. The pilot program’s provisions state that hemp having THC above the federal statutory compliance level will not constitute an insurable cause of loss. Additionally, hemp will not qualify for replant payments or prevented plant payments under the pilot program.
Furthermore, beginning with the 2021 crop year, hemp will also be insurable under the Nursery crop insurance program and the Nursery Value Select pilot crop insurance program. Under both programs, hemp will be insurable if grown in containers and in accordance with federal regulations, any applicable state or tribal laws, and terms of the crop insurance policy.
In its issuing release, the USDA stated that more information on the pilot will be available in 2020. Crop insurance is sold and delivered solely through private crop insurance agents.
Finally, Tennessee is one of the states selected for the program, with the state’s hemp farmers being able to search the list of crop insurance agents online here.
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