Congressional agriculture leaders from each events are asking whether or not crop insurance coverage for hemp can be workable.
The crop insurance coverage problem got here up Thursday within the Home Agriculture Committee, the place Democratic Chairman Collin Peterson of Minnesota expressed doubts that hemp could possibly be insured within the close to future, given how little is thought about producing it at industrial scale.
“I don’t see how on the earth you’re going to give you a product for hemp,” Peterson informed Invoice Northey, undersecretary for farm manufacturing and conservation on the U.S. Division of Agriculture.
Northey visited the committee for an replace on final yr’s Farm Invoice, and the trade was reported by IEG Coverage, an agribusiness information web site.
Northey acknowledged USDA sees “challenges developing with a product (for hemp) that pretty represents the chance, and understanding the way it must be priced.”
Final month the USDA introduced that farmers producing hemp for fiber, flower or seeds can be eligible for 2020 crop insurance coverage protection beneath the Complete-Farm Income Safety (WFRP) program. Nevertheless, no USDA-backed insurance coverage is obtainable only for hemp, and farmers can’t purchase WFRP hemp protection till the USDA finishes writing the principles for the way the crop might be grown.
The highest-ranking Republican on the committee, Texas Rep. Mike Conaway, stated legalizing hemp has “opened a Pandora’s field.”
“If a hemp plant is careworn by drought or lack of water, the THC ranges skyrocket,” Conaway stated.” So we’re going to be insuring an unlawful product if we’re lined by crop insurance coverage.”
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