This federally-reinsured pilot crop insurance program provides Actual Production History (APH) coverage for eligible hemp producers in certain counties in 21 states.

Eligibility

The crop is insurable if:

  • The grower has a share in the hemp crop;
  • The grower has at least one prior year of history producing hemp;
  • It is a type listed in the actuarial documents and grown for the production of industrial and consumer products;
  • Premium rates are provided in the actuarial documents;
  • It is grown under a processor contract executed by the applicable acreage reporting date;
  • It is grown under official certification or license issued by the applicable governing authority that permits production of the hemp;
  • It is planted for harvest as hemp in accordance with the requirements of the processor contract and production management practices of the processor; and
  • It is planted to an adapted variety and not a variety prohibited

Insured Causes of Loss

  • Adverse weather conditions, including natural perils such as drought and excess precipitation;
  • Earthquake;
  • Failure of the irrigation water supply, if caused by an insured peril during the insurance period;
  • Fire;
  • Insects and plant disease, except for insufficient or improper application of pest or disease control measures;
  • Wildlife; or
  • Volcanic Eruption

Not Covered Under Hemp APH

  • Levels of tetrahydrocannabinol (THC) in excess of 0.3 percent on a dry weight basis, in accordance with the Agriculture Improvement Act of 2018 and applicable Federal regulations;
  • Failure to follow requirements contained in the processor contract;
  • Any harvested production infected by mold, yeast, fungus, or other microbial organisms after harvest; or
  • Any damage or loss of production due to the inability to market the hemp for any reason other than actual physical damage to the hemp from an insurable cause of loss.
  • Hemp will not qualify for replant payments or prevented planting

 

Premium Subsidy

Coverage level

50%

coverage

55%

coverage

60%

coverage

65%

coverage

70%

coverage

75%

coverage

Subsidy67%64%64%59%59%55%

 

Insured may only select one coverage level for each insured type in the county. The above is based on basic units. Additional subsidy is available for enterprise units. CAT coverage is also available.

 

Learn more in our Hemp APH product fact sheet (see right).

 

The information contained in this publication is for general purposes only and shall not modify the terms of any insurance policy. Please refer to policy information found in the actuarials for your commodity/plan type.