Did you know that, until hemp and CBD products were legalized by the 2018 Farm Bill, hemp farmers were unable to get federal crop insurance?
The previous ban made it harder for farmers to grow hemp crops since there was a level of risk attached to growing and selling hemp and CBD products. But at Shi Farms, we are excited about the changes that are happening in the hemp industry with the declassification of hemp, including the availability of crop insurance.
Read this post to learn more about how crop insurance will affect hemp farmers and our team at Shi Farms. And if you’re looking for hemp wholesale products, we provide top-quality hemp and CBD products, including distillate, isolate, and hemp flower. Learn more about our process, ingredients, and the hemp wholesale products we supply. Furthermore, if you want to become part of our farm, you can become a partner today!
What the Availability of Crop Insurance Means
Before hemp and CBD products were legalized nationwide through the 2018 Farm Bill, hemp was still classified as a banned substance, making it a challenging industry for farmers to feel secure or insured in.
But now that hemp and CBD are legal, there are more and more opportunities for farming hemp — including the availability of federal crop insurance for the 2020 crop year. This insurance coverage will be available under the Whole-Farm Revenue Protection (WFRP) program. This crop insurance will provide a safety net for those hemp farmers, keeping their hemp farms protected.
Right now, the WFRP will cover specialty, organic, and nontraditional agricultural commodities up to a revenue of $8.5 million. Now, hemp farmers who cultivate plants that comply with the national requirement of less than 0.3% THC can be covered under this WFRP program. These coverages are expected to expand as more areas of the 2018 Farm Bill are implemented, including coverage from the Farm Service Agency’s (FSA) Noninsured Disaster Assistance Program.
What did hemp farmers do before the Farm Bill?
The short answer to this question is nothing. Before the Farm Bill, if any farmer chose to grow hemp crops, they knew that they were doing so at their own risk and expense. In some cases, hemp farmers were able to purchase private crop insurance out of pocket, but this was still a riskier and more costly option that other conventional farmers didn’t have to worry about.
Unlike other farmers who can insure their crops and know that they are protected in the case of natural disasters and other potential damage to their crops, hemp farmers did not have that same level of security. The fact that hemp farmers can now get insurance coverage provides more forms of security for these farmers.
Where Shi Farms Fits in
Shi Farms is proud to have been mentioned in a Hemp Industry Daily article about this new availability of hemp crop insurance. Our company has worked to make an impact in the hemp and CBD industries by providing transparency of ingredients and striving for sustainable growing, cultivating, and business practices.
As our managing director Steven Turetsky explained in Hemp Industry Daily’s article, the legalization of hemp products, and the availability of crop insurance, is “a monumental step forward for the industry and a huge relief to so many farmers around the country.”
The article from Hemp Industry Daily contains more information about crop insurance availability for hemp farmers, along with information from other key players in the hemp industry.
Beyond Hemp Crop Insurance
The previous ban against hemp products affected more than just the ability of farmers to get crop insurance. Hemp farmers even had trouble with aspects like finding a water supply they could use for their classified crop.
This issue is something Shi Farms has even encountered in Colorado. In Hemp Industry Daily’s article, our managing director Turetsky mentioned problems like the fact that “we’re still waiting for hemp to be considered an agricultural crop by the water district in Colorado.”
Beyond the ability to grow and keep their crops protected, before federal crop insurance farmers also had to consider questions like: Where is my water coming from? Does my state have regulatory bodies that consider hemp as a marijuana plant? The continued enactment of the 2018 Farm Bill will continue to address these problems for hemp farmers, but there are still barriers that need to be worked through.
Trust Shi Farms for Hemp Wholesale Products
If you’re looking for hemp wholesale products, Shi Farms is located in Colorado and committed to changing the hemp industry for good. From our focus on sustainable agricultural practices to setting an example for global agriculture and business practices, we are here to provide top-quality hemp wholesale products. Learn more about Shi Farms and our hemp and CBD products today!