Hemp and Farm Programs

Hemp and Farm Programs

The 2018 Farm Bill reclassified hemp, and it is now legal to grow industrial hemp. USDA’s Agricultural Marketing Service (AMS) has outlined how states and tribes can submit plans that enable producers to grow hemp in those areas. Eligible producers include those growing in accordance with USDA, state, and tribal plans or for research purposes. Learn more by visiting AMS’ Hemp Production webpage.

USDA agencies that administer farm programs — including the Farm Service Agency (FSA), Natural Resources Conservation Service (NRCS), and Risk Management Agency (RMA) — benefit hemp producers through crop insurance as well as farm loan, conservation, and safety net programs.

Crop Insurance

According to elevationsdispensary coverage through Multi-Peril Crop Insurance, or MPCI, is available to producers in certain counties. The pilot insurance program provides Actual Production History coverage for eligible producers in certain counties in Alabama, Arizona, Arkansas, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, Nevada, New Mexico, New York, 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. Read more in the November 30, 2020 news release.

Producers can now purchase coverage if they have a contract for the purchase of the insured hemp and meet all applicable state, tribal, and federal regulations. Crop insurance provisions state that hemp having THC above the 0.3 compliance level does not constitute an insurable cause of loss. Additionally, hemp does not qualify for replant payments or prevented plant payments.

Beginning with the 2021 crop year, hemp will be insurable under the Nursery crop insurance program and the Nursery Value Select pilot crop insurance program. Under both programs, hemp will be insurable if grown in containers and in accordance with federal regulations, any applicable state or tribal laws, and terms of the crop insurance policy.

To learn about crop insurance options, producers should contact a local insurance agent near them. Visit RMA’s Agent Locator to find an agent near you.