Hemp Farming and Industry Insurance
The new legislation makes it much easier for hemp
farmers to protect their crops. The legalization of hemp removes many of the difficulties that marijuana farmers still have when trying to buy crop coverage. Hemp farmers may be new to the world of
crop insurance, so they need to understand the basics. Buying insurance means that their crops have a level of protection against weather and other threats. Some farmers forgo purchasing this
insurance, preferring to gamble that their crops will thrive – a risky choice that can have severe financial repercussions.
Crop insurance may provide coverage only for hail
damage or it may be multiple peril crop insurance (MPCI) that protects against weather, disease, drought, flooding, etc. Now that hemp is legal, farmers will have more choices for crop insurance,
including both government-supported and privately-issued policies. Certainly, more companies will get into the hemp specialty insurance market since the demand is bound to explode.
For years, hemp production was limited by the crop’s
legal status and its association with marijuana. Now hemp has been accepted as a legitimate agricultural product and given legal status in the United States. In addition, much of the stigma of
marijuana has disappeared as well. Hemp is poised to become a standard crop raised by farmers all over the country. Hemp products are already in great demand, with CBD oil being of particular
interest to the healthcare industry. Since farmers can now openly grow hemp just as they would their other crops, they need to treat it like their wheat or corn, which includes buying crop insurance.
No farmer can afford to invest in a crop and then lose it to pests or severe weather.