Weather is the Biggest Risk to Growing Hemp. According to the 2019 U.S. License Report from Vote Hemp, 230,000 acres of hemp were planted this year, with as much as 40%-50% (115,000 – 138,000 acres) not harvested, due to crop failure, non-compliant crops and other factors. Most of that lost production was due to adverse weather!
USDA Authorization. The 2018 Farm Bill legalized hemp, subject to state authorization. The USDA authorized the development of crop insurance but, due to the lack of production history, the introduction of subsidized crop insurance has not yet occurred. At the end of October, the USDA released a rule establishing the U.S. Domestic Hemp Production Program, with provisions regarding THC testing and the disposal of plants with THC levels > 0.3%. The USDA opined that this rule will make hemp farmers eligible for USDA loan programs, disaster assistance, crop insurance and conservation, beginning with the 2020 season. However, significant questions remain regarding testing (what, when, how) under the program.
Whole Farm Revenue Protection (WFRP). The WFRP program allows coverage of all revenue for commodity crops produced on a farm, up to a total insured revenue limit of $8.5 million. WFRP is popular for specialty crops and organic commodities and is available for the 2020 hemp crop grown for fiber, flower or seeds.