RMA launches pilot program for hemp insurance, but not for Iowa

by | Jan 31, 2020 | 5 Ag Stories, News

The 2018 Farm Bill provided for the creation of a nationwide program to let farmers start producing industrial hemp. States must have their own plans submitted to the USDA for final approval. Iowa is one of those states. As farmers start to make plans for producing a new crop, they are wanting to have certainty that their new venture is as secure as any other crop.

The United States Department of Agriculture (USDA) is offering Whole-Farm Revenue Protection beginning in the 2020 growing season for industrial hemp production. USDA?s Risk Management Agency (RMA) Administrator Martin Barbre tells us what will be covered and what won?t be.

Barbre says with Hemp still being a fledgling industry, having enough processing to handle a crop that may see a huge growth in production is going to be a challenge.

This is just a pilot program. RMA is just being cautious at this time.

Only 21 states were chosen for this pilot program, and Iowa was not among them. This is something potential Iowa producers will need to take into consideration as they make their plans for 2020.

Iowa has submitted its plan to the USDA for approval. If you have any questions about hemp production in 2020, contact the Iowa Department of Agriculture and Land Stewardship.