Hemp Insurance Pilot Program from RMA
“It’s going to have a national price level" said Barbre. "We’re going to have T yields, that’s what we are go on to start with. I guess, if produce have two-to-three yields, if they’ve grown under the 2014 farm bill, they may have some more records that may help them get a better yield. But, everyone will have T yields available. One of the things I will point out is, we have a thing called a new farmer provision, that if you’re a new farmer, and basically, that’s a new crop in a new county, you can get 100 percent of T yields, this will not apply to this product. I just want producers to understand this is going to be a very conservative coverage to start with. We want to make sure that we don’t insure more than the value.”
Hemp is still a fledgling industry, and Barbre noted that in 2019, 65 percent of the hemp grown in the U.S. did not have a contract "home." That will be important for producers moving forward.
The pilot insurance program will provide Actual Production History coverage for eligible producers in 21 states: Alabama, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Virginia, and Wisconsin.