Hemp Crop Insurance Program (HCIP) Fact Sheet

Hemp Crop Insurance Program (HCIP) Fact Sheet

For the 2020 Crop Year, USDA’s Risk Management Agency has made available an Actual Production History (APH) crop insurance policy for hemp production. This yield based policy will only be available in select counties and states. Please contact an Ag Risk Management and Insurance agent today if you are interested.

Important Dates

• Sales Closing: 3/15 for 2020 only
• Production Reporting: 4/29
• Final Plant Date: 6/15 to 7/20 depending on location and practice
• Acreage Reporting Deadline: 8/15
• Premium Billing Date: 10/1
• End of Insurance: 10/31

Insurance Availability

• Must have a share in the crop
• You have at least one year of history producing the crop
• It is a type listed in the actuarial documents
• Premium rates are provided by the actuarial documents
• Must be grown under a processor contract executed by the applicable acreage reporting date
• It is grown under an official certification or license issued by the applicable governing authority that permits the 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
• It is planted to an adapted variety and not a variety prohibited by the applicable governing authority

Insurability Requirements

• By Sales Closing Date, insureds must: Provide evidence that the insured or an SBI of the insured has produced hemp in any previous year. Acceptable evidence from Crop Insurance Standards Handbook (CISH) is limited to FSA records, or THC testing records from governing authority if the FSA record is not available.
• By Acreage Reporting Date, insureds must provide a copy of their official certification form or official license issued by the applicable governing authority authorizing the insured to produce Hemp; and each processor contract.

Insurance Period

Coverage begins at the later of when we accept your application or the date when the crop is planted in the field and ends with the earliest occurrence of one of the following:

• Total destruction of the crop
• Harvest of the unit
• Final adjustment of loss
• Abandonment of the crop
• October 31

Insurable Acreage Rotation Requirements

Insurance will not attach to any acreage on which the following crop was grown the preceding crop year:

• Cannabis
• Canola
• Dry Beans
• Mustard
• Rapeseed
• Sunflowers

Insurable Types and Practices

The following types and practices insurance availability will vary by county. Insurable Irrigated and non- irrigated practices will vary by county.

• CBD: Transplant (Floral, Whole Plant)
• CBD: Direct Seeding (Floral, Whole Plant)
• Fiber
• Grain

'Floral' means CBD biomass consisting of all parts of the hemp flower for processing. 'Whole plant' means CBD biomass consisting of all parts of the hemp plant including the stalks, stems, leaves, and flowers for processing.

Covered 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 from lighting
• Insects and plant disease, except for the insufficient or improper application of pest or disease control measures;
• Wildlife
• Volcanic eruption

Additionally, we will not insure against:

• 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
• 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.

Crop/Acreage is Uninsurable if :

• Planted for any purpose other than hemp
• Interplanted with another crop (excluding a cover crop);
• Planted into an established grass or legume
• Planted in a confined space such as a greenhouse or other physical structure; or
• Planted after the Final Planting Date
• Planted on acreage where a hay crop was harvested
• Planted behind a crop (other than a cover crop) that reached the headed/budded stage prior to termination.
• Acreage is uninsurable if certification or license is terminated or suspended during the crop year
• The crop is damaged prior to Final Plant Date and not replanted when practical to replant

Duties in the Event of Damage or Loss

If a damage or loss occurs you must:

• Provide to our loss adjuster a copy of your certification form or official license for the current crop year for the applicable insured county prior to the completion of any claim
• Protect the crop from further damage by providing sufficient care
• Notify your crop insurance agent within 72 hours of your initial discovery of the damage, but no later than 15 days after the end of the insurance period
• Leave representative samples for each field of the damaged unit

If insured acreage of the insured type is damaged during the insurance period by an insured cause of loss, and you intend to harvest the acreage before the final THC level is determined by the applicable governing authority, you must provide us notice so we may inspect the damaged acreage to determine appraised production to count.

Disclaimer: All information contained herein is subject to change per USDA. See most current crop year policy documents and USDA RMA actuarials for the most up to date information.