Hemp, Farm Bill Programs Available to Hemp Growers in 2020

USDA’s Agricultural Marketing Service announced a rule that outlines how states and tribes can submit plans that will enable producers to grow hemp in those areas.

This rule is a first step that enables USDA agencies that administer farm programs — including the Farm Service Agency (FSA), Natural Resources Conservation Service (NRCS), and Risk Management Agency (RMA) — to provide guidance on eligibility for additional farm programs.

Hemp producers growing in accordance with USDA guidelines are eligible for certain USDA programs in 2020. USDA’s Farm Agency (FSA), Natural Resources Conservation Service (NRCS), and Risk Management Agency (RMA) are updating guidelines on several programs to support growers of hemp, which was reclassified by the 2018 Farm Bill.

Once production plans are approved and licenses are issued, hemp producers may be eligible for many USDA programs for the 2020 crop year.

What could hemp producers be eligible for?

Whole-Farm Revenue Protection

The Whole-Farm Revenue Protection (WFRP) will be available for hemp grown for fiber, flower, or seeds. WFRP allows coverage of all revenue for commodities produced on a farm up to a total insured revenue of $8.5 million.

Producers can purchase WFRP coverage if they have a contract for the purchase of the insured industrial hemp and meet all applicable state, tribal, and federal regulations.

Hemp that has tetrahydrocannabinol (THC) above the 0.3 compliance level will not be covered by crop insurance. Additionally, hemp will not qualify for replant payments under WFRP.

Noninsured Crop Disaster Assistance Program

The Noninsured Crop Disaster Assistance Program (NAP) will be available for eligible hemp producers to provide insurance-type coverage due to adverse weather conditions.

NRCS Conservation Programs

Multiple USDA conservation programs will be offered for eligible producers, including the Environmental Quality Incentives Program, Conservation Stewardship Program, Regional Conservation Partnership Program, and Agricultural Conservation Easement Program.

Farm Loans

Hemp producers may be eligible for FSA farm loans, such as operating, ownership, beginning farmer, and farm storage facility loans.

How do hemp producers report acres to USDA?

Acreage Reports

Hemp producers are required to file an acreage report with FSA. This is a requirement for growing under USDA-approved hemp plans as well as prerequisite for many USDA programs.

To file an acreage report, producers should:

• Obtain a hemp production license or authorization number issued by USDA, state, or tribe.
• File an acreage report with FSA, identifying each field or subfield on which hemp is planted, including the license or authorization number. The field or subfield could be referred to as a “lot” and does include greenhouses.
• Identify the intended use of the hemp being reported:
  • Fiber – used for cloth, pressed plastics, ropes, animal bedding, paper, biofuel, packaging, concrete additives, spill cleanup.
  • Processing – grown for extraction of plant resin, which includes cannabidiol (CBD) and other phystocannibinoids to be extracted from the flower.
  • Resin is used in oils, lotions, cleansers, bath or other pharmaceutical or topical products.
  • Grain – used for hemp hearts, crushed seed oil (not CBD), protein supplements (human or animal consumption).
  • Seed – used for propagation stock, hybrids (non-human consumption).

USDA is working to make available program options for hemp producers. As information is available, USDA will post on farmers.gov/hemp. If you have additional questions, contact your local USDA service center, which you can find at farmers.gov/service-locator.