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A crop-insurance option for hemp growers in select counties of 21 states will be provided by the U.S. Department of Agriculture’s Risk Management Agency. The pilot program will provide actual-production-history coverage in the Multi-Peril Crop Insurance Program for eligible producers in certain counties in Wisconsin and several other states. Multi-peril crop-insurance coverage is for hemp grown for fiber, grain or cannabidiol oil for the 2020 crop year. Also available to hemp growers is whole-farm revenue-protection coverage.

The 2018 farm bill amended the Controlled Substances Act to address how industrial hemp is to be defined and regulated at the federal level. The amendments allowed the Federal Crop Insurance Corporation to offer policies for hemp growers. The farm bill defines hemp as containing 0.3 percent or less tetrahydrocannabinol on a dry-weight basis.

To be eligible for multi-peril crop insurance a hemp producer must comply with applicable state, tribal or federal regulations for hemp production. The producer also must have at least a one-year history of producing the crop and have a contract for the sale of the insured hemp.

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 by a state, tribal or federal program approved by the USDA Agricultural Marketing Service interim final rule issued in October 2019.

Hemp having tetrahydrocannabinol exceeding the federal compliance level won’t constitute an insurable cause of loss. Hemp also won’t qualify for replant payments or prevented-plant payments in the multi-peril crop-insurance program.

Beginning with the 2021 crop year, hemp will be insurable in the Nursery Crop Insurance Program and the Nursery Value Select Pilot Crop-Insurance program. In both programs hemp will be insurable if grown in containers and in accordance with federal regulations, applicable state or tribal laws, and terms of the crop-insurance policy. Visit rrma.usda.gov and "search for agent locator" for more information.

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