Hemp Actual Production History Pilot Program Coverage

The Hemp insurance program will provide Actual Production History (APH) coverage for eligible producers in certain counties in Alabama, Arizona, Arkansas, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Missouri, Montana, Nevada, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Virginia, and Wisconsin. Insurable types vary by county, and information on eligible counties and insurable types is available through the RMA’s Actuarial Information Browser.

You must submit your application for coverage on or before the applicable sales closing date to obtain coverage. For specific information on sales closing dates by county, see RMA’s Actuarial Information Browser.

Coverage begins the later of the date your application is accepted or the date the crop is planted in the field. Coverage ends the earlier of: destruction of the insured crop, harvest, abandonment, the date loss adjustment is completed on the unit, or October 31.

To be eligible for the pilot program:

1. A hemp producer must:
   1. Comply with regulations of and be licensed by the applicable state, tribal, or federal authorities governing hemp production where the crop is grown; and
   2. Have at least one year of history producing the crop.
2. The crop must:
   1. Be planted in a field;
   2. Be a variety adaptable in the area;
   3. Be grown under a processor contract;
   4. Be planted for harvest as hemp in accordance with the requirements of the processor contract;
   5. Be planted to a minimum of 5 acres for CBD or 20 acres for grain and fiber;
   6. Not be planted after the Final Planting Date for the type in the county (no late planting period);
   7. Be planted in accordance with the rotational requirements contained in the Special Provisions;
   8. Not be planted on acreage from which, in the same calendar year, a perennial hay crop was harvested or a crop (other than a cover crop) reached the headed or budded stage prior to termination; and
   9. Not be interplanted with another crop or planted into an established grass or legume.

Refer to the Hemp Crop Provisions and Special Provisions for additional requirements.

The insured or a Substantial Beneficial Interest (SBI) of the insured must provide acceptable documentation they have produced a hemp crop in any county in any previous crop year from:

1. Farm Service Agency (FSA); or
2. The applicable governing authority (e.g. State, Tribe, or USDA) documenting the THC testing of hemp grown by the insured or SBI if an FSA record is not available.

A legal written agreement containing at least your promise to plant, grow, and deliver a specified quantity of hemp to the processor; the processor’s promise to purchase the hemp, and a base contract price or method to determine the price that will be paid for the hemp.

A hemp processor is any business enterprise regularly engaged in processing hemp that possesses all licenses and permits for processing hemp required by the applicable governing authority in the state in which it operates, and that possesses facilities, or has contractual access to such facilities with enough equipment to accept and process contracted hemp within a reasonable amount of time after harvest. For hemp grain, a broker will be considered a processor for purposes of meeting the requirements of a processor contract.

No. You can only insure the portion of the crop in which you have an insurable interest. Insurable interest is your percentage of the insured crop that is at financial risk.

No. Insolvency of a processor will not result in a loss of coverage for the insurance period.

There are provisions in the policy to address vertically integrated operations. Please consult with your crop insurance agent for additional details.

MPCI coverage will be available for the hemp types of fiber, grain, and cannabidiol (CBD) for the 2020 crop year. Not all types and practices will be available in all counties.

You must select a single type for coverage under the policy.

Coverage levels will be available from 50% to 75% in 5% increments. You must insure all acres of hemp in the county; however, you may select different coverage levels on your application for each type of hemp. Different coverage levels by irrigation practice will not be available.

You may elect the Catastrophic Risk Protection Endorsement which limits your coverage to 50% of your approved APH and 55% of the price election and will apply to all acres of hemp in the county.

A price will be published for each type and practice in the actuarial documents. Your contract price will not be used to determine the value of lost production.

Basic, Optional, and Enterprise units will be available. Enterprise units by irrigation practice and multi-county enterprise units are not available.

Your approved yield will be the simple average of the total dry pounds of hemp you produced in previous years. Yield altering options or endorsements such as yield substitution (YA), yield exclusion (YE), cups (YC), trend-adjusted APH (TA), and yield floors are not available.

A zero actual yield will be recorded for the acreage.

The policy covers loss of production due to adverse weather conditions, fire, insects, and plant disease (except for insufficient or improper application of pest or disease control measures), wildlife, earthquake, volcanic eruption, and failure of irrigation water supply if due any of these causes.

Mandatory destruction of the crop due to THC levels in excess of governing authority regulations is not a covered cause of loss.

No. There is no coverage for failure of the production to meet quality standards (e.g. seed size, failure to pass herbicide or pesticide screens, low CBD concentration, etc.). The hemp APH policy only covers loss of dry pounds of grain, fiber or floral/whole plant material due to an insurable cause.

No, hemp will not qualify for replant payments or prevented planting indemnities under the pilot program; however, the policy does require the crop to be replanted if it is still practical to do so.

The amount of production must be determined by the loss adjuster prior to the destruction of the crop in order to determine if there is a payable loss. It is very important that you report damage to the crop as soon as it’s known and notify the AIP at least 15 days prior to destruction of the crop so they can determine the amount of production. Failure to do so will result in no payable loss.

No. Crop insurance covers physical damage from an insurable cause of loss, such as adverse weather, but does not cover the inability to market hemp for any reason other than actual physical damage.

Yes, you must provide a copy of your valid certification form or official license for the current crop year for the applicable insured county prior to the completion of any claim for indemnity.

In addition to the requirements of Section 6 of the Basic Provisions, you must report the applicable land identifier, including Global Positioning System (GPS) coordinates, and provide a copy of your valid certification or license, and your processing contract(s).

No, written agreements are not authorized under the policy.

You must provide your approved insurance provider (AIP) notice within 72 hours of the date of termination or suspension.

Yes, all acreage of the crop will be considered uninsured and no premium or indemnity will be due for any of the acreage of the crop.

No. A grain crop which is swathed prior to combining or a fiber crop cut for the purpose of retting and not baled will not be considered harvested.

RMA defines “Agricultural Expert” as person(s) who are employed by the Cooperative Extension System or the agricultural departments of universities, or other persons approved by the Federal Crop Insurance Corporation (FCIC), whose research or occupation is related to the specific crop or practice for which such expertise is sought.