The U.S. Department of Agriculture (USDA) on Thursday announced that it has taken steps to improve insurance policies for hemp businesses, making them more flexible in response to stakeholder feedback.<\/p>\n
USDA\u2019s Risk Management Agency (RMA) said it is making it so hemp producers are no longer mandated to deliver their crop \u201cwithout economic value for insurability.\u201d It further amended policy to clarify how the \u201camount of insurable acreage is determined if the processor contract specifies both an acreage and a production amount.\u201d<\/p>\n
\nIn response to feedback received from the producers, @USDA<\/a> is improving #cropinsurance<\/a> for hemp. Learn more: https:\/\/t.co\/XptfotYrIX<\/a> pic.twitter.com\/1OY0r4pEPL<\/a><\/p>\n
\u2014 Risk Management Agency (@usdaRMA) December 2, 2021<\/a><\/p>\n<\/blockquote>\n\n
\u201cThis change was made in the policy to ensure producers know how their insurable acreage is determined for those contracts,\u201d the agency said in a press release.<\/p>\n
RMA Administrator Marcia Bunger said that hemp is \u201can emerging crop, and we are working with hemp producers to provide insurance options that make sense for producers and for insurance providers.\u201d<\/p>\n
\u201cRMA has worked to expand and refine our offerings to be responsive and dynamic,\u201d she said.<\/p>\n
The department also said it has added a requirement for producers who grow hemp directly from seeds that are planted in the ground.<\/p>\n
\u201cBefore insurance attaches, producers must have acreage inspected and must have a minimum of 1,200 live plants per acre,\u201d it explained. \u201cThis requirement was added to align direct-seeded hemp with the common farming practice for transplanted Cannabidiol (CBD) of transplanting at least 1,200 live plants per acre.\u201d<\/p>\n
The policy changes were outlined in a bulletin<\/a> that was published on Tuesday. The department also released updated insurance standards<\/a> and crop loss adjustments<\/a> handbooks, as well as a detailed summary<\/a> of the changes.<\/p>\n
USDA has taken a number of steps to align hemp insurance policies with those of other lawful crops since the plant was federally legalized under the 2018 Farm Bill, consistently seeking out input from stakeholders as the industry matures.<\/p>\n
Last year, for example, the department made it so hemp farmers can qualify for Multi-Peril Crop Insurance<\/a>, in addition to several other coverage programs for which the crop is now eligible<\/a>.<\/p>\n
As it stands, federal hemp crop insurance programs are available in select counties in 25 states. This year alone, \u201chemp producers insured 12,189 acres and 59 policies to protect $10.9 million in liabilities,\u201d USDA said<\/a>.<\/p>\n
As part of its overall outreach, the department launched a large-scale survey in August<\/a> to gain insight into the hemp market that\u2019s emerged.<\/p>\n
After\u00a0requesting permission from the White House<\/a>\u00a0earlier this year to conduct the survey of about 20,000 hemp farmers, the agency\u2019s National Agricultural Statistics Service recently said that the forms are being finalized to be filled out via mail or online.<\/p>\n
USDA is asking questions about plans for outdoor hemp production, acreage for operations, primary and secondary uses for the crop and what kinds of prices producers are able to bring in. The questionnaire lists preparations such as smokeable hemp, extracts like CBD, grain for human consumption, fiber and seeds as areas the department is interested in learning about.<\/p>\n
Last year, USDA announced plans to distribute a\u00a0separate national survey to gain insights from thousands of hemp businesses<\/a>\u00a0that could inform its approach to regulating the industry.<\/p>\n
That survey is being completed in partnership with National Association of State Departments of Agriculture and the University of Kentucky. The department said it wanted to learn about \u201ccurrent production costs, production practices, and marketing practices\u201d for hemp.<\/p>\n
There\u2019s still much to learn about the burgeoning market, even as USDA\u00a0continues to approve state regulatory plans<\/a> for the crop. Recently, the agency\u00a0approved a hemp plan submitted by Colorado<\/a>, where officials have consistently insisted that the state intends to be a leader in the space.<\/p>\n
While USDA\u2019s final rule for hemp took effect on March 22, the agency is evidently still interested in gathering information to further inform its regulatory approach going forward. Industry stakeholders say the release of the final rule is a positive step forward that will provide businesses with needed guidance, but they\u2019ve also pointed to a number of policies that they hope to revise as the market matures such as USDA\u2019s hemp testing requirements.<\/p>\n
The federal Small Business Administration\u2019s Office of Advocacy\u00a0expressed a similar sentiment in a blog post<\/a>\u00a0in February, writing that it is \u201cpleased with some of the changes that [USDA] has made to the rule, as they offer more certainty and are less burdensome to small farmers,\u201d but \u201csome concerns remained unaddressed in the final rule.\u201d<\/p>\n
USDA announced in April that it is\u00a0teaming up with a chemical manufacturing company<\/a>\u00a0on a two-year project that could significantly expand the hemp-based cosmetics market.<\/p>\n
Meanwhile, the U.S. Department of Energy (DOE) announced in August that it is sponsoring a project to develop hemp fiber insulation<\/a>\u00a0that\u2019s designed to be better for the environment and public health than conventional preparations are.<\/p>\n
\nDEA Again Boosts 2022 Production Goals For Psychedelics Like Psilocybin, MDMA and DMT<\/a><\/p>\n<\/blockquote>\n\n
Photo courtesy of Brendan Cleak.<\/em><\/p>\n
The post USDA Announces Hemp Policy Changes To Improve Insurance Coverage For Producers<\/a> appeared first on Marijuana Moment<\/a>.<\/p>\n
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