Congressional agriculture leaders from each parties are asking regardless of whether crop insurance coverage for hemp will be workable.
The crop insurance coverage challenge came up Thursday in the Residence Agriculture Committee, exactly where Democratic Chairman Collin Peterson of Minnesota expressed doubts that hemp could be insured in the close to future, offered how small is recognized about making it at industrial scale.
“I do not see how in the planet you are going to come up with a solution for hemp,” Peterson told Bill Northey, undersecretary for farm production and conservation at the U.S. Division of Agriculture.
Northey visited the committee for an update on final year’s Farm Bill, and the exchange was reported by IEG Policy, an agribusiness news web-site.
Northey acknowledged USDA sees “challenges coming up with a solution (for hemp) that relatively represents the danger, and understanding how it need to be priced.”
Final month the USDA announced that farmers making hemp for fiber, flower or seeds will be eligible for 2020 crop insurance coverage coverage beneath the Entire-Farm Income Protection (WFRP) system. Even so, no USDA-backed insurance coverage is offered just for hemp, and farmers cannot obtain WFRP hemp coverage till the USDA finishes writing the guidelines for how the crop can be grown.
The major-ranking Republican on the committee, Texas Rep. Mike Conaway, mentioned legalizing hemp has “opened a Pandora’s box.”
“If a hemp plant is stressed by means of drought or lack of water, the THC levels skyrocket,” Conaway mentioned.” So we’re going to be insuring an illegal solution if we’re covered by crop insurance coverage.”
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