Additionally, hemp does not qualify for replant payments or prevented plant payments. Beginning with the crop year, hemp will 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. To learn about crop insurance options, producers should contact a local insurance agent near them. Producers should contact their local FSA county office for more details on acreage reporting. Hemp producers growing in accordance with Section of the Farm Bill of the do not need to modify their conservation program contract for their continued participation.
Before passage of the Farm Bill, producers could only grow hemp if they met the university research pilot requirements of Section of the Farm Bill. This interim final rule does not necessarily provide more information or clarity about crop insurance but having the rule in place is critical for hemp farmers looking to manage their risk through crop insurance. For the crop year WFRP is available for hemp grown for fiber, flower or seeds. In order to participate in crop insurance, a farmer will need to certify acreage with FSA and identify each field, subfield or lot in which hemp is grown.
Additionally, a farmer will be required to have a contract for the purchase of the hemp before being able to purchase insurance. One key point that has been made by RMA is that a crop breaching the 0. These new regulations offer much-needed guidance for farmers and others involved in the production of industrial hemp.
Importantly, we now have a better idea of how the crop will be sampled and tested for its THC content and what happens when a crop breaches the 0. Also, the rules, thankfully, do not make it more difficult to secure reliable farm labor and they reaffirm that states that have not legalized hemp may not interfere in the interstate transportation of the crop. Having these rules in place make it possible for other agencies and industries, such as financial institutions and crop insurance providers, to begin establishing their own guidelines and procedures for dealing with industrial hemp.
While it is impressive that the department was able to put together a comprehensive set of regulations for a complicated issue in a short period of time, questions remain about some aspects of hemp production.
USDA is requesting public comment on these questions and it is important for farmers and stakeholders to participate in the process. Contact: Michael Nepveux Economist michaeln fb. Market Intel November 3, Market Intel October 28, Now, as president of the California Farm Bureau, I am fighting to uphold and restore the promise of sustainable water delivery in my state.
After two years of severe drought, our farmers and ranchers are suffering. Market Intel October 31, Share This Article. Subscribe Get Market Intel delivered to your inbox. Related Content. Credit: Montana Farm Bureau. Full Article. Credit: California Department of Water Resources.
That could result in two unfortunate outcomes for hemp growers: the insurer decides not to write a policy out of fear of unknown risks, or the insurer prices the policy high as a conservative hedge against those unknown risks. Not even Canada can help insurers gauge U. Though industrial hemp has been legal in Canada since , generating 20 years of insurance data from which to draw, Canadian weather is vastly different than what is seen in most of the U.
Hemp Roundtable , a coalition of hemp companies advocating for pro-hemp policies. So, U. Given that crop insurance is top of mind for many existing and emerging hemp companies, Hemp Grower spoke to leading experts to get their insights into options for insuring hemp businesses during the Farm Bill transition period.
Here are three tips to ensure a profit by insuring crops. Because every industry is different, the baseline of traditional business coverage varies widely. For hemp growers, the following list should be considered an essential but non-exhaustive checklist, according to experts surveyed by Hemp Grower :. Tobin notes in particular that a must-have for all hemp companies across the supply chain is adequate product liability coverage.
Hemp finds its way into an expansive array of goods, from oils, fuel and paint to cereal, bread and protein shakes.
Product liability would cover every manner of hemp businesses in the event that the hemp itself somehow causes illness or injury. In addition to traditional business coverage, many hemp farmers purchase crop hail coverage from private insurers.
This is separate from federally subsidized Multiple Peril Crop Insurance, or MPCI, which covers loss of crop yields from drought, excessive moisture, freeze and disease. Assuming you are one of the hemp farmers still ineligible for federal crop insurance, the private market is the only option, which can become a costly and frustrating proposition.
According to experts surveyed for this article, private crop insurance for all of the protections noted, including hail, is not widely available and is often prohibitively expensive. Regardless of whether business owners decide to stomach the high costs for crop insurance, Tobin advises that hemp farmers should still avail themselves of inventory coverage. Mahoney has observed that many hemp growers still have gaps in their coverage and that few insurance carriers have flexible insurance products for the unique business challenges faced by the fledgling industry.
Major carriers are waiting to get engaged in the market until they feel the hemp industry has matured from the standpoint of claims management, Mahoney says. That lack of competition means premiums are higher relative to other industries. The good news is that by now, this state-by-state strategy should be familiar to hemp growers who began cultivation following the Farm Bill. Both the and laws envisioned overlapping state and federal authority to regulate hemp.
And until the USDA finishes writing regulations, the regulatory framework rules the day. Because hemp was legalized only recently, major branded insurance companies have yet to offer products tailored to the unique needs and risks of hemp growing.
Until then, he says, hemp companies must take out lines of coverage where they can while maintaining a spirit of resourcefulness and risk mitigation by any means necessary. Somebody tells them no, and they know they have to get it done themselves. To be sure, declining coverage is never advisable and should only be considered as a last resort, Mahoney says.
In some cases, hemp business owners are declining private crop insurance because of the high costs, he says. But while the availability of insurance coverage for hemp businesses remains limited, there are insurers that are willing to underwrite such businesses, he says. And insurance will be critical in these initial legal growing years. What do you have to lose? Great insurance salespeople never lose sight of what their customers have to lose—a house, a car, their life.
Much in the same vein, hemp insurance salespeople should keep these numbers handy: According to the hemp advocacy group Vote Hemp , American farmers were licensed to grow 9, acres of hemp in ; 25, acres in ; 78, acres in ; and , so far in We are excited to introduce you to the inaugural issue of Hemp Grower. Whether you are an experienced farmer or a novice, and whether you are growing hemp for fiber, grain or cannabidiol CBD , Hemp Grower is here to help you and your business succeed. For a summary of state laws related to industrial hemp, click on the states in the map below or see the chart for a complete list of state statutes.
SB 6 Also, see Act or S. Create Account. State Industrial Hemp Statutes. This website uses cookies to analyze traffic and for other purposes.
You consent to the use of cookies if you use this website. Continue Our online privacy policy. Creates an industrial hemp research program overseen by the Alabama Department of Agriculture and Industries to study hemp.
The department may coordinate the study with institutions of higher education. Alaska Stat. Directs the commissioner of natural resources to adopt regulations related to industrial hemp including approved sources or varieties of seed, testing requirements, and establishing isolation distances.
Specifies registration requirements and allowable activities for registered producers of industrial hemp. Directs the department to establish fee levels to cover regulatory costs and annually review these fee levels. Allows for the creation of a pilot program by an institution of higher education or the Department of Natural Resources. Defines both industrial hemp and cannabidiol oil. Amends definitions for hashish oil and marijuana. Clarifies that the addition of industrial hemp to food does not create an adulterated food product.
Requires a report on or before Dec. Authorizes a pilot program for the research, growth, cultivation and marketing of industrial hemp and establishes the Industrial Hemp Trust Fund.
Allows for commercial hemp production, processing, manufacturing. Creates the Arkansas Industrial Hemp Program including a year research program. Authorizes the State Plant Board to adopt rules to administer the research program and license growers. Requires the State Plant Board to provide an annual report starting Dec.
Establishes a separate program fund, which will include feeds collected and other sources of funding. Establishes registration for seed breeders. This division will not become operative unless authorized under federal law. Allows hemp cultivation for commercial and research purposes to be overseen by the Industrial Hemp Committee under the Department of Agriculture.
Establishes a seed certification program. Establishes a grant program for state institutions of higher education to research new hemp seed varieties. Establishes an agricultural pilot program for hemp research and directs the Connecticut Department of Agriculture to prepare a state plan. Requires licenses for the cultivation and processing of hemp. Establishes an industrial hemp research program overseen by the Delaware Department of Agriculture.
Allows the department to certify institutions of higher education to cultivate hemp for research purposes. Directs the Department of Agriculture and Consumer Services to authorize and oversee the development of industrial hemp pilot projects at certain universities. Commercialization projects may be allowed after two years with certain conditions. Authorizes the universities to develop pilot projects in partnership with public, nonprofit, and private entities; Requires a university to submit a report within two years of establishing a pilot program.
Establishes the state hemp program and directs the Department of Agriculture and Consumer Services, including a land registry and licensing, to submit a plan to USDA. Provides requirements for the distribution and sale of hemp extract. Establishes an industrial hemp advisory council.
Provides for licensing requirements for growers and processors as part of a state hemp plan. Authorizes certain colleges and universities to conduct research on the cultivation, breeding and development of hemp.
Excludes regulated hemp and hemp products from the definition of marijuana as a controlled substance.
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