Hemp

Overview

Hemp coverage is provided under the Actual Production History (APH) plan of insurance for 2020+ RYs.

This coverage will be provided to Hemp (1218) growers in select counties of the following states: Alabama, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Virginia, and Wisconsin. The program will be expanded to additional states for the 2021 RY.

The three insurable types of hemp under this coverage are Fiber (017), Grain (016), and Cannabidiol/CBD (018) with coverage levels ranging from 50% to 75% in addition to CAT coverage (50%/55%).

The Sales Closing Date (SCD) for all states and counties for the 2020 crop year will be 3/15/2020. In subsequent years the SCD Alabama, California, and North Carolina will be 2/28 and all other states will have a SCD of 3/15. Additional program dates are as follows: Acreage Reporting is 8/15, Premium Billing is 10/1, End of Insurance Period is 10/31, and the Contract Change Date will be 11/30.

Consult the actuarial documents for availability, allowed Types and Practices, and Sales Closing Dates by state/county/crop.

• The coverage allows growers to choose different coverage levels by type but does not allow separate coverage levels by Irrigation Practice.
• Basic Units by Share, Optional Units by Section, Section Equivalents, FSN, and Practice, and Enterprise Units (with the exception of EU by Irrigation Practice and Multi-County EU) are allowed.
• CBD Types of Hemp have a 5-acre minimum acreage requirement whereas Grain and Fiber Hemp Types have a 20-acre minimum acreage requirement.
• Plan 90 crop

Hemp coverage does not allow for contract pricing, late plant, prevented planting, replant, high risk acreage, or written agreements. The APH for Hemp do not allow New Producer provisions, Yield Substitution (YA), Yield Cup (YC), Trend Adjusted APH (TA), Yield Exclusion (YE), Yield Floors, PTY, or Master Yields.

Keying and processing Hemp coverage is similar to other MPCI coverages; however, the following also apply for Hemp:

• A Type field will display on the Add New Quote, Add New Policy, and Add New Coverage/Maintain Coverage pages when Hemp is the selected crop. Type is required only if electing a different coverage level.
• The Prior Year PP Acres field will be removed from the detail line and Fast Edit AR when Hemp is the crop; any late planted and PP acreage will be determined to be uninsurable.
• APH updates will remove Yield Floor, YA, YC, TA, and YE from any approved yield calculations as well as PTY and Master Yield functionality.
• New Producer is not allowed and is unable to be selected for Hemp coverages.

Hemp is not insurable without a contract, so a processor contract is required for the coverage. However, the System's Contract functionality is specific to when a contract is used to determine the price for the commodity, which is not applicable to Hemp. As such, Contract functionality has been disabled in the System for Hemp—the processor contract(s) will need to be attached to the grower record for verification by CIS, as with Sugar Beets.

At Mark Complete, if an AR sign date exists, acres are greater than "0", and there is not an attachment with the Attachment Type "Contract" (Attachment category is MPCI Policy) for the current RY, then the coverage will be suspended until a contract is attached.

The GPS coordinates required for Hemp can be handwritten on the Acreage Report where determined by the AIP. Since these are not transmitted to RMA, they are not captured in the user interface for storage in the System.