State agriculture representatives have disclosed updated and extended insurance cover alternatives through the Multi-Peril Crop Insurance pilot program.
This will give hemp growers more crop protection options in 2021.
According to the U.S Department’s administrator of Agriculture’s Risk Management Agency, Martin Barbre, hemp avails interesting financial windows to U. S’s farmers. The department listens and responds to the farmers’ risk management requirements.
On Monday, USDA announced changes like extending the MPCI program to states in counties such as Arkansas, Texas, Arizona, and Nevada. The program will also expand to thirteen other counties in states with ongoing insurance covers.
The extended program enables hemp grain broker contracts. It also adjusts the program’s billing and reporting dates.
Recently RMA authorized ‘additional flexibilities’ due to the COVID19 pandemic. These flexibilities will include using Approved Insurance Providers to avail claims, policies, and contracts. Hemp cultivators can get more insight into handling remote crop coverage business via USDA’s COVID19 website.
As a new legal plant, hemp is regarded as high-risk due to unstable genetics and high knowledge required to grow the crop. Another reason is the high potential to rapidly become illegal cannabis if they contain more than 0.3% THC.
Before 2020, hemp businesses and growers were not eligible for any state crop coverage programs.
On 6th February 2020, USDA announced the launch of two programs that’ll protect hemp farmers’ plants from natural calamities. MPCI offers coverage against yield loss due to loss of hemp cultivated for CBD oil, grain, or fiber. NAP (Noninsured Crop Disaster Assistance Program) coverage protects farmers against losses related to low yields or destroyed crops.
Hemp growers can apply for this coverage online. Bill Northey, the undersecretary for Farm Production and Conservation, said that they’re happy to provide these insurance covers to hemp farmers, and hemp provides new financial opportunities to the growers.