Hemp has traditionally not been insurable through the federal crop insurance program, but that changed within the past few years. Hemp is generally now insurable through the program.
USDA Change to Federal Crop Insurance Program
As of 2021, the U.S. Department of Agriculture (USDA) adjusted its program stipulations so that hemp is insurable through the federal crop insurance program. Coverage is broadly available in states where hemp can be legally grown, and thus is usually available in Cumberland, MD, and the state’s many other communities.
In Maryland, coverage is mainly available through the Whole Farm Revenue Protection program. A pilot program is available in select other states but not yet in Maryland. The whole farm program can provide robust protection in many situations, however.
Coverage is generally based on Actual Production History (APH) for hemp grown for fiber, grain, or CBD oil, provided it contains 0.3% or less tetrahydrocannabinol (THC). Percent is determined by dry weight.
Protecting a Valuable Crop
Because hemp can be such a valuable crop, it’s especially important to make sure that the crop is insured against damage and loss. While there may be other coverage options. The USDA’s Whole Farm Revenue Protection Program is normally the most affordable and effective option for growers in Cumberland, MD.
An insurance agent specializing in hemp operations can help growers confirm that this is the right option for them. Because this remains a relatively new insurance, it’s particularly important to work with an agent who knows hemp crop insurance options well.
Knippenberg Insurance Inc. Is Here To Help
For help insuring hemp crops in Maryland, contact our knowledgeable agents at Knippenberg Insurance Inc.
