Crop Insured

Hemp is insurable if:

  • You have a share in the crop;
  • You have at least one year of history producing the crop;
  • It is a type listed in the actuarial documents;
  • Premium rates are provided by the actuarial documents;
  • It is grown under a processor contract executed by the applicable acreage reporting date;
  • It is grown under an official certification or license issued by the applicable governing authority that permits production of the hemp;
  • It is planted for harvest as hemp in accordance with the requirements of the processor contract and production management practices of the processor; and
  • It is planted to an adapted variety and not a variety prohibited by the applicable governing authority. Refer to the Hemp Crop Provisions.

Causes of Loss

  • Adverse weather conditions, including natural perils such as drought and excess precipitation;
  • Earthquake;
  • Failure of the irrigation water supply, if caused by an insured peril during the insurance period;
  • Fire;
  • Insects and plant disease, except for insufficient or improper application of pest or disease control measures;
  • Wildlife; or
  • Volcanic eruption.

Additionally, we will not insure against:

  • Levels of tetrahydrocannabinol (THC) in excess of 0.3 percent on a dry weight basis, in accordance with the Agriculture Improvement Act of 2018 and applicable Federal regulations;
  • Failure to follow requirements contained in the processor contract;
  • Any harvested production infected by mold, yeast, fungus, or other microbial organisms after harvest; or
  • Any damage or loss of production due to the inability to market the hemp for any reason other than actual physical damage to the hemp from an insurable cause of loss.

Insurance Period

Coverage begins at the later of when we accept your application or the date when the crop is planted in the field, and ends with the earliest occurrence of one of the following:

  • Total destruction of the crop;
  • Harvest of the unit;
  • Final adjustment of loss;
  • Abandonment of the crop; or
  • October 31.

See Crop Provisions for additional information.

Important Dates

Sales Closing (2020) March 15
                         (2021 and later) February 28 or March 15
Acreage Report Due August 15
Cancellation February 28 or March 15

Sales Closing Dates*

hemp map

*Program may not be available in all counties. Sales closing date for all counties where program is available will be 3/15 for initial crop year of 2020.

Acreage Reporting Requirements

You must file a report of hemp acreage with your crop insurance agent by the acreage reporting date. Consult your crop insurance agent for more information and specific reporting requirements.

Duties in the Event of Damage or Loss

If a damage or loss occurs you must:

  • Provide to our loss adjuster a copy of your certification form or official license for the current crop year for the applicable insured county prior to the completion of any claim;
  • Protect the crop from further damage by providing sufficient care;
  • Notify your crop insurance agent within 72 hours of your initial discovery of damage, but not later than 15 days after the end of the insurance period;
  • Leave representative samples for each field of the damaged unit; and
  • If insured acreage of the insured type is damaged during the insurance period by an insured cause of loss, and you intend to harvest the acreage before the final THC level is determined by the applicable governing authority, you must provide us notice so we may inspect the damaged acreage to determine appraised production to count.

Coverage Levels and Premium Subsidies

The premium subsidy percentages and available coverage levels, if electing basic units, are shown below. Your share of the premium will be 100 percent minus the subsidy amount.

Coverage Level 50 55 60 65 70 75
Premium Subsidy 67 64 64 59 59 55
Your Premium Share 33 36 36 41 41 45

You may only select one coverage level for each insured type in the county insured under this policy. You must select the coverage level, by type, on your application by the sales closing date.

If you do not select a coverage level for all insurable types specified in the actuarial documents, and you plant one or more additional insurable types, the lowest coverage level you select on your application for any insurable type will apply to each additional insurable type you plant.

The Catastrophic Risk Protection Endorsement (CAT) limits coverage to 50 percent of your average yield and 55 percent of the price election. The cost for CAT coverage is an administrative fee of $655, per crop, per county.

Insurance Units

Basic, Optional, and Enterprise units are available in select hemp counties. Premium discounts apply for basic and enterprise units. Additional subsidy is available for enterprise units.

Coverage Options

You may buy crop insurance coverage under one of the insurance plans offered: Catastrophic Risk Protection or Actual Production History.

Where to Buy Crop Insurance

All multi-peril crop insurance, including CAT policies, are available from private insurance agents. A list of crop insurance agents is available at all USDA service centers and on the RMA web site at www.rma.usda. gov/Information-Tools/Agent-Locator-Page.