By Creditors’ Rights & Bankruptcy and Litigation Practice Groups
The USDA’s Risk Management Program recently announced the availability of crop insurance coverage for hemp grown for fiber, flower, or seeds only, available for certain industrial hemp growers in areas covered by USDA-approved hemp plans or who are part of a state or university research pilot program. No state’s plan has been USDA-approved yet, but as the USDA is expecting to issue regulations now interpreting the 2018 Farm Bill, this statement indicates that states’ regulatory plans will be potentially approved by next year.
The USDA’s Whole-Farm Revenue Protection Program guidelines state that hemp grown with THC levels above legal limits (typically 0.3% on a dry weight basis) will not constitute an uncurable cause of loss.
Read more about the availability of hemp crop insurance and the program details at the USDA’s website here.
The information in this article is not intended to provide legal advice.