HempCBD Investor Magazine Issue 2 - February 2020 | Page 127

Pilot Crop Insurance Program. A pilot program is currently under development for 2020. Early indications are that limitations under the pilot will be similar to WFRP, with no protection for prevented planting, quality/prevented harvest issues, or if THC>0.3%. Which states the pilot will be available in are still under review. It appears likely that only a portion of production costs will be covered.

Weather Protection Programs for Hemp. Weather protection is available to mitigate a number of potential exposures, including:

•Protection for too wet at planting and too wet at harvest which the pilot programs may not cover;

•Address the situation where pilot programs are available but coverage limits are inadequate;

•For processors, investors and lenders who do not have access to federal programs or private crop-hail insurance;

•Supplementing private crop-hail insurance that may lack the necessary coverage limits to cover the entire value of the crop;

•Protecting against the weather stressors that can cause THC levels to increase, nullifying coverage under other available programs;

•Other gaps, limits and exclusions under other available programs.