Hemp

AgriLogic Consulting, LLC is pleased to announce the Federal Crop Insurance Corporation (FCIC) Board of Directors approved the Hemp Actual Production History (APH) Multi-Peril Crop Insurance (MPCI) developed by AgriLogic Consulting’s AgVersity analytical team under the Federal 508(h) process on December 19, 2019. The program will initially be offered in select counties in Alabama, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Virginia, and Wisconsin, with expansion to additional areas expected in subsequent crop years. The program will be available through participating Approved Insurance Providers (AIP) with a Sales Closing Date for the initial year of March 15, 2020.

The Hemp APH policy will provide producers with a much-needed risk management solution for a rapidly expanding industry and will provide coverage for hemp grown for fiber, grain, or cannabidiol (CBD) for the 2020 crop year. The policy will insure loss of production due to multiple natural perils, similar to other major industrial food, feed, and fiber crops. However, coverage for replant, prevent planting, or required destruction of the crop due to tetrahydrocannabinol (THC) levels above that allowed by regulators will not be provided by the crop insurance program.

To be eligible for coverage, growers will be required to have a minimum of one year of documented growing experience and be compliant with all applicable regulations and with regulatory agencies governing hemp production for their area. In addition, the crop must be grown under an acceptable processor contract and other rules as defined in the Hemp APH MPCI policy provisions that will become publicly available later. To sign up for the Hemp APH MPCI program or to get a quote, contact your local crop insurance agent who is a licensed with an Approved Insurance Provider (AIP) of the Federal Crop Insurance Program. If you do not have an agent you may locate one on the USDA RMA’s website: https://prodwebnlb.rma.usda.gov/apps/AgentLocator/#/.

 

We are grateful for the support of the many growers, processors, and industry members who shared their knowledge and information to make MPCI coverage for hemp in 2020 a reality. Future industry participation is critical to ensure subsequent crop year expansion and enhancement initiatives truly reflect this rapidly changing industry and we would be greatly appreciative of any insight or data you are willing to share. You can contact us by clicking here (select Hemp from the To: dropdown). We have also developed a very beneficial short questionnaire that will provide an opportunity for you to share your knowledge and experience by clicking on this link: Hemp Questionnaire

 

AgriLogic's Hemp Q&A

 

For more information please visit the United States Department of Agriculture (USDA) Risk Management Agency (RMA) website:

Hemp Training Module - Grower Version (download pdf)

Hemp Training Module - AIP Version (download pdf)