Two USDA Programs Available for Hemp Producers

Two U.S. Department of Agriculture (USDA) programs are available to protect hemp producers’ crops from natural disasters. 

A pilot hemp-insurance program through Multi-Peril Crop Insurance (MPCI) provides coverage for insurable causes of loss of hemp grown for fiber, grain or cannabidiol oil. To be eligible for the pilot program, among other requirements, a hemp producer must have at least one year of producing the crop and have a contract for the sale of the insured hemp. The minimum acreage requirement is five acres for CBD and 20 acres for grain and fiber. Hemp will not qualify for replant payments or prevented plant payments under MPCI.

The Noninsured Crop Disaster Assistance Program (NAP) protects against losses associated with hemp grown for fiber, grain, seed or CBD for the 2020 crop year in the form of lower yields, destroyed crops or prevented planting where no permanent federal crop insurance program is available. 

The deadline to sign up for both programs is March 16, 2020.  To find out more about USDA risk-management programs for hemp producers, visit farmers.gov/hemp.