Hemp Farmers Now Qualify for Federal Crop Insurance

[dropcap class=”kp-dropcap”]T[/dropcap]he United States Department of Agriculture (USDA) has announced that certain hemp farmers now qualify for federal crop insurance, just like other industrial farmers in the U.S.

According to Marijuana Moment, hemp farmers operating under the 2014 Farm Bill can now obtain federal planter’s insurance for the 2020 crop planting season. Other hemp farmers will be able to get coverage once more solid regulations are put into place.

Those who are eligible will receive Whole-Farm Revenue Protection (WFRP), an insurance program that can cover up to $8.5 million worth of product. It applies to farmers producing hemp for flower, fiber, or seeds. “Numerous producers are anxious for a way to protect their hemp crops from natural disasters,” USDA Risk Management Agency (RMA) Administrator Martin Barbre said in a press release. “The WFRP policy will provide a safety net for them. We expect to be able to offer additional hemp coverage options as USDA continues implementing the 2018 Farm Bill.”

While more coverage is coming for other hemp farmers, the USDA also specifically emphasized that this coverage will not apply to cannabis containing more than 0.3 percent THC. “Once rulemaking is complete, RMA, the Farm Service Agency (FSA), the Natural Resources Conservation Service and other USDA agencies will share eligibility information on their programs, which include safety net, conservation, farm loan and disaster assistance programs,” their statement explained. “This includes FSA looking at additional coverage options through its Noninsured Crop Disaster Assistance Program and through RMA-administered crop insurance.”

All across the U.S., hemp is starting to gain more acceptance. The National Credit Union Administration just approved working with hemp businesses and some are even considering a future of hemp for making sanitary pads. Now, farmers will have more assurance on which to rest, as their businesses will be insured.