Floods and hurricanes affecting states in the East and drought conditions prevailing across the country, particularly in the Western region, have made this year’s conditions for crop production unpredictable. To protect their investments, cannabis and hemp producers are working to secure insurance for their crops. However, this is not an easy feat, considering hemp has been federally illegal for a longer period of time than it has been legal.
Hemp was legalized under the 2018 Farm Bill, which allowed producers to pay for private insurance policies as well as secure crop insurance through the Department of Agriculture. As more states legalize recreational and medical cannabis, commercial insurance providers have been preparing to expand their coverage. However, there are limits on how far their coverage can reach.
With regard to drought insurance, federal agriculture regulators are allowing emergency practices to help crop producers affected by drought conditions. The Risk Management Agency has also been working with crop insurance companies to make payments more efficient to policyholders in drought areas. Earlier this month, the agency also announced that it would be extending crop insurance deadlines to give producers more time to pay their administrative fees and premiums. In addition, the agency also permitted approved insurance providers to waive interest fees on written payment agreements for another 60 days.
Producers of hemp who hold crop insurance policies should contact their agents if they notice any damage in order to give the insurance companies time to appraise their crop prior to replanting or cutting. It should be noted, however, that most insurance companies don’t provide crop insurance for outdoor growing fields, despite the fact that all insurance is considered to be disaster insurance.
Most insurance agents sell both private and federal insurance policies, which means they possess the tools to help hemp farmers develop custom programs. Elite Risk Insurance Solutions owner Jeff Kleid states that insurance solutions are often based on gathering direct feedback from growers, which is combined with accumulated data.
For lower-level coverage and smaller farmers, creating custom coverage programs is a good option while larger hemp growers may benefit from a hybrid program, which may have high-deductible plans.
Private policies usually include inventory, equipment coverage, product liability and living plant coverage. Farmers are allowed to add different weather events and crop coverages for disasters to their policies as well.
When acquiring insurance, farmers should keep in mind that insurance companies are more willing to cover disaster events such as wildfire for indoor hemp growers operating in warehouses or greenhouses.
Established players in the CBD/hemp sector such as Golden Triangle Ventures Inc. (OTC: GTVH) know all too well that a ruined crop will not yield high-quality products, so every effort must be made toward ensuring that the crop is given all the care and protection required.
NOTE TO INVESTORS: The latest news and updates relating to Golden Triangle Ventures Inc. (OTC: GTVH) are available in the company’s newsroom at https://cnw.fm/GTVH
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