On August 27, 2019, USDA’s Risk Management Agency (“RMA”) announced that it will provide crop insurance for industrial hemp beginning in the 2020 crop year. Insurance coverage will be provided under the Whole-Farm Revenue Protection (“WFRP”) program for hemp producers growing hemp for fiber, flower, or seeds and who are part of a state or university research pilot as authorized by the 2014 Farm Bill. Other producers will be able to obtain insurance in areas covered by USDA-approved hemp plans as they become available under the 2018 Farm Bill.
“Numerous producers are anxious for a way to protect their hemp crops from natural disasters,” said RMA Administrator Martin Barbre. “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.”
WFRP provides coverage of up to $8.5 million in insured revenue for commodities produced on a farm. According to WFRP provisions, hemp having THC above the compliance level (0.3%) will not constitute an insurable cause of loss. Also, hemp will not qualify for replant payments under WFRP.