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Hemp Insurance
A new crop of Industrial Hemp still has to deal with old perils. Help is available to growers in Arizona, California, Oregon, and Texas.

Industrial Hemp Insurance.

Since passage of the 2018 farm bill enacted by Congress, many producers are racing to figure out the potential market for this relatively new agricultural product.
Whether you think hemp is the next big thing, or just another crop that will be overproduced, farmers, policymakers and carriers are finding ways to affordably insure this crop and the producer’s investment in it. 

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In the past, since Hemp was classified under Schedule I, if any revenue of the operation came from a Schedule I substance, the producer would be ineligible for all insurance under that policy. This means that a producer can grow hemp without becoming ineligible to insure their other commodities. Producers of hemp can now insure under MPCI and WFRP. 

Where we are at now:

Background 

Since Spring 2020 producers in several states are now able to insure their industrial hemp crop. Both Whole Farm Revenue Program (WFRP) or MPCI yield based programs are options for growers to manage their farming risk.

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 https://www.rma.usda.gov/en/News-Room/Press/Press-Releases/2020-News/USDA-Announces-Details-of-Risk-Management-Programs-for-Hemp-Producers

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MPCI

The newly released Federal crop insurance program for industrial hemp is modeled after the Multi-Peril Crop program current growers are familiar with. In conjunction with grower and industry feedback, the APH based program is available for experienced producers. Since industrial hemp has multiple end uses, the program may help growers to insure against production losses for CBD oil, fiber, and seed. As with all new crop insurance programs, industrial hemp coverage was rolled out in a pilot status. Currently it is available in these selected western states: AZ, CA, OR, and TX.

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The sales closing date for Arizona & California is 2/28.

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The sales closing date for Oregon & Texas is 3/15.   

 

Private Named Peril

The National Crop Insurance Services Inc. (NCIS) & individual crop insurance carriers have developed a crop hail policy, rating system and claims loss procedures for this commodity. This private named peril program is available in most states.   

If you have additional questions, please feel free to contact us.

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Weather Risk Coverage:

As an authorized distributor of eWeatherRisk programs, hemp growers can take advantage of this innovative way of addressing specific weather-related issues you face growing and bringing your crop to completion.

  

eWeatherRisk is available for growers & complements the federal crop insurance program for several reasons.

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  • ​The MPCI policy for hemp may not meet the true full value of the crop, with this program you can select to cover the FULL value of your hemp crop.

  • You can purchase eWeatherRisk coverage a minimum of 20 days in advance of your target window.

  • Extremes in weather such as excessive rainfall, Summer drought, Summer heat, hail, early Fall freeze or insufficient rainfall can be addressed. These weather issues may result in the hemp crop having quality issues or becoming “hot”. The MPCI program may not adequately address crop quality losses, this program fills that gap.

  • You are in the driver’s seat with this program. You can purchase coverage for individual perils or as a combination. 

 

Getting a quote on this innovative program is simple. Give us a call and provide us with some basic information such as growing location (nearest city or town), the time period your need coverage for, optimally 60-90 days, and the estimated value of your crop. Crop insurance simplified is not just our motto, it’s what we do every day. We work hard so that you can focus on more important farming issues. Give us a call and we’ll be happy to give you a quote. 

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