The U.S. Department of Agriculture (USDA) recently announced improvements to the hemp crop insurance program for the 2025 and succeeding crop years. The changes will allegedly ease certain crop-rotation requirements and remove smoke damage as a cause of covered loss.
The USDA’s Risk Management Agency (RMA) notes that the crop-rotation rule revisions will effectively “allow hemp to be insurable if planted following soybeans.” It applies in 14 states: Colorado, Illinois, Indiana, Maine, Michigan, Minnesota, Montana, Nevada, New York, North Dakota, Oregon, Pennsylvania, South Dakota and Wisconsin.
“The Risk Management Agency is continuing to work with hemp producers to improve coverage options,” says Brian Frieden, director of RMA’s Regional Office that covers Illinois, Indiana and Michigan. “This policy change will give producers more options when it comes to their crop rotation.”
Additional Hemp Crop Insurance Information
In addition to changing the rotation requirements, RMA states that smoke damage is not a covered cause of loss, as “hemp coverage does not allow for quality adjustment.” Fire, however, remains a covered cause of loss, as does volcanic eruption.
Other causes of loss that aren’t covered by the program include THC levels that exceed the federal 0.3 percent limit on hemp as well as harvested production that’s infested with mold, yeast or fungus, according to Marijuana Moment.
Sales closing dates for the 2025 crop year vary by county and include January 31, 2025, February 28, 2025, and March 15, 2025. Producers can contact their crop insurance agent to find the deadline for their county.
