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Product Management Bulletin-PM-21-072

Date
To
All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties
From
Richard H. Flournoy, Deputy Administrator
Subject
Hemp Actual Production History (APH) Changes Effective for the 2022 and Succeeding Crop Years

Background

The Federal Crop Insurance Corporation Board of Directors approved changes to the Hemp APH crop insurance program, under section 508(h) of the Federal Crop Insurance Act, on August 25, 2021.

The following changes are applicable for the 2022 and succeeding crop years:

  • Add flexibility to insurability requirements for hemp under contract;
  • Clarify how the amount of insurable acreage is determined if the processor contract specifies both an acreage and a production amount;
  • Update reference to the Agriculture Marketing Service final rule, which took effect March 22, 2021; and
  • Add insurability requirement for producers who grow direct-seeded hemp to have acreage inspected and have a minimum of 1,200 live plants per acre two inches or taller with the first true leaf pair after cotyledon emergence.

Action

The following documents will be available by close of business today on the RMA website at www.rma.usda.gov:

  • Hemp Crop Provisions (22-1218)
  • Hemp Loss Adjustment Standards Handbook (FCIC-20600L)
  • Hemp Insurance Standards Handbook (FCIC-20600U)

Approved insurance providers must notify policyholders of these changes at least 30 days prior to the cancellation date, as required by the policy.

Interested producers should contact a crop insurance agent for further information. A list of agents can be found on the RMA website at www.rma.usda.gov/tools-reports/agent-locator page.

DISPOSAL DATE:
December 31, 2021