USDA Announces Pilot Insurance Coverage for Hemp Growers

By December 24, 2019 April 28th, 2020 Regulatory News

On December 23, 2019, the Risk Management Agency (RMA) of the USDA, announced a new crop insurance option for hemp growers in select counties of 21 states in 2020.  The pilot insurance program will provide Actual Production History (APH) coverage under 508(h) Multi-Peril Crop Insurance (MPCI) for eligible producers. The MPCI coverage applies to hemp grown for fiber, grain, or CBD oil for the 2020 crop year. This is in addition to the Whole-Farm Revenue Protection coverage available to hemp growers that was announced earlier this year.

The Multi-Peril Crop Insurance (MPCI) pilot program will be offered to farmers in select counties of 21 states for the 2020 production season:

  • Alabama
  • California
  • Colorado
  • Illinois
  • Indiana
  • Kansas
  • Kentucky
  • Maine
  • Michigan
  • Minnesota
  • Montana
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Tennessee
  • Virginia
  • Wisconsin

Program Eligibility

To be eligible for the MPCI 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; and
  • Have a contract for the sale of the insured hemp.

Additional Requirements

  • Producers also must be a part of a Section 7606 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.