As a result of direct feedback from producers, USDA announced on Thursday a series of crop insurance policy changes that aim to provide more flexibility around how producers work with processors and consistency for the emerging hemp market regulations. Specifically, USDA’s Risk Management Agency (RMA) revised the hemp insurance policy to add flexibility to the insurability requirements for hemp under contract. This means growers will not be required to deliver hemp without economic value for insurability. However, contracts between producers and processors may still include delivery requirements. Another notable change provides clarification on how the amount of insurable acreage is determined if the processor contact specifies both an acreage and a production amount. RMA also added a new requirement for producers who grow direct-seeded hemp where producers must have acreage inspected and have a minimum of 1,200 live plants per acre before insurance can be attached.

In addition to Actual Production History (APH) coverage, hemp coverage is available through Whole-Farm Revenue Protection and the Nursery crop insurance program, which are offered through ProAg. It is also covered through the Noninsured Crop Disaster Assistance Program through USDA’s Farm Service Agency.

Read more on changes to hemp crop insurance here.