Is Hemp Insurable?
About Tim Bishton, CLCS
Tim is the Agribusiness Specialist at Crow Insurance Agency a local insurance agency in Middletown Delaware providing home, auto, farm, crop, business, personal, and life insurance for New Jersey, Pennsylvania, Delaware and Maryland customers.
Tim studies emerging trends in the agribusiness area and combines his expertise as a Commercial Lines Specialist to create customized plans for his customers.
Crop insurance is now available to hemp growers through the United States Department of Agriculture. At Crow Insurance we make it a point to be educated on the kinds of insurance available to this constantly evolving industry.
The hemp industry is a new and emerging industry in agriculture. Hemp is a variety of the cannabis plant that contains 0.3% or less tetrahydrocannabinol (THC). The plant, by contrast, is considered marijuana if the THC levels go above the 0.3% THC. There are many different uses that can be obtained from the hemp plant, such as seed for future production, fiber for clothes, rope, paper, as well as cannabidiol (CBD) oil that is extracted from the plant material. CBD oil is used and marketed in many health and food products.
The 2018 Farm Bill allowed hemp to be grown legally because it differentiated hemp and marijuana, as it was previously considered the same under the Controlled Substances Act. The bill also removed hemp from the list of controlled substances. This, in turn, prompted the insurance industry to respond with product offerings including property, liability, and crop insurance coverage. Standard farm policies typically exclude growing marijuana; however, hemp may be permitted. If a grower wants to process or sell hemp products themselves or on their farm, a General Liability policy may also be needed to properly cover those risks.
Crop insurance is now available to hemp growers through the United States Department of Agriculture. These programs include the Multi-Peril Crop Insurance (MPCI) Hemp Pilot Insurance Program, Whole Farm Revenue Protection, Nursery Crop Program, and the Nursery Value Select Pilot Crop Insurance program. Under these nursery programs, hemp is insurable if it is grown in containers (as opposed to in the ground) and in accordance with federal regulations. Like property and liability insurance, coverage for crop insurance is evolving and it is still imperative to speak with a crop insurance agent to see what options are available in your state.
The Crow Insurance Agency is an ag-focused insurance agency that serves the Mid-Atlantic region. Because of our commitment to agriculture, we will be able to assist you in getting the best coverage for your individual operation, no matter the size. If you are currently growing or thinking of growing hemp, please contact us today so that we can speak about what coverage options are available to you!