Advisory board, insurance programs focus on hemp

The state government is moving to appoint an advisory group on hemp regulation, and the federal government has announced insurance programs for the crop.

The California Department of Food and Agriculture wants to fill 13 pending vacancies on the Industrial Hemp Advisory Board, which advises CDFA and makes recommendations on matters including industrial hemp seed law and regulations, enforcement, annual budgets and setting an assessment rate.

Eleven board members with terms of office expiring May 31 currently serve on the board. Legislation added two more board members, effective this year.

Board members serve three-year terms. They meet at least once a year. Members receive no compensation but are paid necessary traveling expenses.

The board has vacancies for five registered cultivators of industrial hemp; two members of an established agricultural research institution; one representative of the California State Sheriffs' Association; one county agricultural commissioner; one representative of the Hemp Industries Association or its successor association; two representatives of businesses that sell industrial hemp products; and one public member.

CDFA said successful candidates will be appointed to serve until May 31, 2023. To apply, send a letter of interest and a brief resumé by March 15 to Michelle Phillips, California Department of Food and Agriculture Pest Exclusion Branch, 1220 N St., Sacramento, CA 95814.

For additional information, visit the Industrial Hemp Program webpage at www.cdfa.ca.gov/plant/industrialhemp/ or email industrialhemp@cdfa.ca.gov.

Two federal programs are now available to protect hemp producers' crops from natural disasters.

A pilot hemp insurance program through Multi-Peril Crop Insurance provides coverage against loss of yield because of insurable causes for hemp grown for fiber, grain or cannabidiol, or CBD, oil.

The MPCI pilot insurance is a new crop insurance option for hemp producers in select counties of California and 20 other states for the 2020 crop year, USDA said. Farmers in 25 California counties will be eligible; for information, visit the USDA Risk Management Agency website at www.rma.usda.gov/. From the "Tools" menu, select "Actuarial Information Browser." At that page, choose "AIB Reinsurance Year 2020," then make the appropriate selections from the drop-down menus.

This pilot insurance coverage is available to hemp growers in addition to revenue protection for hemp offered under the Whole-Farm Revenue Protection plan of insurance.

Also, beginning with the 2021 crop year, hemp will be insurable under the nursery crop insurance program and the Nursery Value Select pilot crop insurance program. Under both nursery programs, hemp will be insurable if grown in containers and in accordance with federal regulations, applicable state or tribal laws and terms of the crop insurance policy.

The other currently available option is the Noninsured Crop Disaster Assistance Program, which protects against losses associated with lower yields, destroyed crops or prevented planting where no permanent federal crop insurance program is available. NAP provides coverage against loss for hemp grown for fiber, grain, seed or CBD for the 2020 crop year.

NAP basic 50/55 coverage is available at 55% of the average market price for crop losses that exceed 50% of expected production. Buy-up coverage is available in some cases. For all coverage levels, the NAP service fee is $325 per crop or $825 per producer per county, not to exceed $1,950 for a producer with farming interests in multiple counties.

Producers may apply now for either program, with a signup deadline of March 16.

Under a regulation issued in October 2019, USDA said, all growers must have a license to grow hemp and must comply with applicable state, tribal or federal regulations.

Farmers must report hemp acreage to the USDA Farm Service Agency after planting, to comply with federal and state law enforcement. The farm bill defines hemp as containing 0.3% or less tetrahydrocannabinol, or THC, on a dry-weight basis.

For more information on USDA risk management programs for hemp producers, see farmers.gov/hemp.