USDA releases info on new hemp crop insurance coverage

The U.S. Department of Agriculture recently announced the availability of crop insurance protection for producers of hemp under two separate programs. With the availability of insurance through these programs,  hemp producers in Colorado may be able to obtain protection of their hemp crops from natural disasters.

The pilot hemp insurance program, through Multi-Peril Crop Insurance, provides coverage against loss of yield because of insurable causes of loss for hemp grown for fiber, grain or Cannabidiol oil. Coverage under the Noninsured Crop Disaster Assistance Program protects against losses associated with lower yields, destroyed crops or prevented planting where no permanent federal crop insurance program is available.

The pilot insurance program provides actual production history coverage for eligible producers in certain counties in 21 states, including Colorado. The USDA has announced that coverage is available in Adams, Alamosa, Arapahoe, Baca, Bent, Boulder, Cheyenne, Costilla, Crowley, Delta, Dolores, Elbert, Kiowa, Kit Carson, Larimer, Las Animas, Lincoln, Logan, Mesa, Montezuma, Montrose, Morgan, Otero, Phillips, Prowers, Pueblo, Rio Grande, Saguache, Sedgwick, Washington, Weld and Yuma counties in Colorado.

“We are pleased that Colorado’s hemp producers will now have protection under the new USDA program for this high-value crop,” said Brian Koontz, hemp program manager at the Colorado Department of Agriculture. “We encourage farmers to research the coverage options available to them and to make informed decisions based on their own needs.”

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