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APH Hemp

A pilot hemp insurance program through Multi-Peril Crop Insurance (MPCI) provides coverage against loss of yield because of insurable causes of loss for hemp grown for fiber, grain or Cannabidiol (CBD) oil.

Revenue protection for hemp is offered nationwide under the Whole-Farm Revenue Protection plan of insurance. Also, hemp is insurable under the Nursery crop insurance program, if grown in containers and in accordance with federal regulations, any applicable state or tribal laws, and terms of the crop insurance policy.

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Crop Insured

The program is available for eligible producers in certain counties in Alabama, Arizona, Arkansas, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, New Mexico, New York, Nevada, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia and Wisconsin. Information on eligible counties is accessible through the USDA Risk Management Agency’s Actuarial Information Browser.

Hemp is insurable if:

  • You have a share in the crop;
  • You have at least one year of history producing the crop;
  • It is a type listed in the actuarial documents;
  • Premium rates are provided by the actuarial documents;
  • It is grown under a processor contract executed by the applicable acreage reporting date;
  • It is grown under an official certification or license issued by the applicable governing authority that permits production of the hemp;
  • It is planted for harvest as hemp in accordance with the requirements of the processor contract and production management practices of the processor; and
  • It is planted to an adapted variety and not a variety prohibited by the applicable governing authority. Refer to the Hemp Crop Provisions.

Causes of Loss

  • Adverse weather conditions, including natural perils such as drought and excess precipitation;
  • Earthquake;
  • Failure of the irrigation water supply, if caused by an insured peril during the insurance period;
  • Fire;
  • Insects and plant disease, except for insufficient or improper application of pest or disease control measures;
  • Wildlife; or
  • Volcanic eruption.

Additionally, we will NOT insure against:

  • Levels of tetrahydrocannabinol (THC) in excess of 0.3 percent on a dry weight basis, in accordance with the Agriculture Improvement Act of 2018 and applicable Federal regulations;
  • Failure to follow requirements contained in the processor contract;
  • Any harvested production infected by mold, yeast, fungus, or other microbial organisms after harvest; or
  • Any damage or loss of production due to the inability to market the hemp for any reason other than actual physical damage to the hemp from an insurable cause of loss.

Coverage Levels

You may select different coverage levels for each insured type of industrial hemp (CBD, grain, or fiber) you intend to grow. Available coverage levels range from 50% to 75% in five percent increments. Premium subsidies vary by level of coverage selected ranging from 67% to 55%. A Catastrophic Risk Protection Endorsement/level of coverage (CAT) is available at 50% of yield and 55% of price; an administrative fee of $655 per crop, per county would apply. Prices are found in the actuarial documents and are per pound.

Insurance Period

Coverage begins at the later of when we accept your application or the date when the crop is planted in the field, and ends with the earliest occurrence of one of the following:

  • Total destruction of the crop;
  • Harvest of the unit;
  • Final adjustment of loss;
  • Abandonment of the crop; or
  • October 31.

See Crop Provisions for additional information.

Important Dates

  • Sales Closing (2020) …… January 31, February 28 or March 15
  • Acreage Report Due …… July 15 or July 31
  • Cancellation …… January 31, February 28 or March 15

Insurance Units

Basic, Optional, and Enterprise units are available in select hemp counties. Premium discounts apply for basic and enterprise units. Additional subsidy is available for enterprise units.

Policy Changes Effective for the 2022 and Succeeding Crop Years

The following changes are applicable for the 2022 and succeeding crop years:

  • Add flexibility to insurability requirements for hemp under contract;
  • Clarify how the amount of insurable acreage is determined if the processor contract specifies both an acreage and a production amount;
  • Update reference to the Agriculture Marketing Service final rule, which took effect March 22, 2021; and
  • Add insurability requirement for producers who grow direct-seeded hemp to have acreage inspected and have a minimum of 1,200 live plants per acre two inches or taller with the first true leaf pair after cotyledon emergence.

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Is This Plan Right For You?

Contact your trusted ProAg crop insurance agent for assistance in comparing the risk management options available to you and your unique industrial hemp operation. Come grow with confidence today.

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Pro Ag Management, Inc.* (collectively with its corporate affiliates, “ProAg®”) is a managing general agency representing several risk bearing insurance companies, including Producers Agriculture Insurance Company and U.S. Specialty Insurance Company and doing business as Pro Ag Insurance Services, Inc. in California, CA Entity License #0F34212. The insurance products described on this website may not be a complete list of all products offered and may not be offered in all states. The provided information does not amend, or otherwise affect, the terms and conditions of any insurance policy issued by ProAg or any of its subsidiaries; always refer to the policy provisions.  Actual coverages will vary based on the terms and conditions of the policy issued.