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Lawmakers make limited progress adjusting federal rules regarding the production of hemp

Green plantIn April, we shared with you the details surrounding the Agriculture Improvement Act of 2018. Five months later, lawmakers in Washington continue to discuss the merits of loosening the rules governing the growth and harvesting of hemp. Up to this point, no significant changes have been announced.

Commercial growth of hemp was effectively banned by the federal government over concerns about marijuana. Restrictions were loosened in the 2014 farm bill. The 2018 farm bill is designed to take that even further. While it broadens the exemptions that make hemp legal, it also requires states to submit their own regulatory plans for federal approval. So far, no states have submitted a plan to implement the new law. That means the only legal hemp being grown is for research under the 2014 pilot program.

The 2014 program allows farmers with a state license to grow hemp for research purposes because hemp isn’t considered a schedule 1 drug, since it contains less than 0.3 percent tetrahydrocannabinols, or THC. The exemption allows Hortica to help insure these crops if growers provide the following:

  • A copy of the license issued
  • Proof that signs are displayed identifying the crop as hemp
  • Verification that the hemp is being grown at the latitude and longitude designated on the license (not required by all states)
  • A signed representation and warranty
  • A completed and signed Cannabis Supplemental Application

Once state or federal leaders develop new regulations to implement the 2018 farm bill, adjustments will be made as to how hemp crops are insured. Contact a Hortica agent if you have any questions or would like more information about insuring any of the crops you grow.

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