As the rules regarding production of hemp change, you’ll want to make sure your insurance covers any growing you do
Growing and farming hemp for profit has become very popular in the U.S. For centuries, American farmers have grown hemp for fiber, building materials, oil, and cosmetics. But commercial growth was effectively banned by the federal government over concerns about marijuana. Those restrictions were loosened in the 2014 Farm Bill. Now, the federal government is changing the rules regarding the crop again.
On December 20, the 2018 Farm Bill was signed into law. 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 is what’s grown 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 of the mind-altering tetrahydrocannabinols, or THC. The exemption allows Hortica to help insure these crops if the following are provided:
- 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 and/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.
For more information on securing your business, check out the Hortica Resources section.
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