Federal crop insurance will soon be available for hemp. The
federal Agriculture Improvement Act (H.R. 2) (the Act) –
which has been approved by both houses of Congress and is now just
awaiting the president's signature – will amend the
Federal Crop Insurance Act, 7 U.S.C. §1501, et seq.,
so that hemp will be a covered "agricultural
commodity."
Federal crop insurance is available only for certain enumerated
agricultural commodities, such as wheat, cotton, flax, and corn.
Historically, cannabis, marijuana, and/or hemp have not been
included among those commodities. That is about to change, at least
in part. The Act, known popularly as the 2018 Farm Bill (the Farm
Bill), will amend the definition of "agricultural
commodity." Pursuant to Section 11119 of the Farm Bill, the
term "hemp" will be added into 7 U.S.C. § 1518
("'Agricultural commodity' defined"), right
between "native grass" and "aquacultural
species."
