The U.S. Department of Agriculture is rolling out a new pilot insurance program for hemp, which will provide Actual Production History coverage under the agency’s Multi-Peril Crop Insurance program. The new insurance program is in addition to federal crop insurance, which the USDA said hemp farmers would have access to in August.

The MPCI coverage includes hemp cultivated for fiber, grain, and CBD for the 2020 crop year but only for eligible producers in certain counties in Alabama, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Virginia, and Wisconsin.

To be eligible for the pilot program hemp producers must comply with applicable state, tribal or federal regulations for hemp production, have produced hemp crops for at least one year, and have a contract for the sale of the insured hemp. Producers also must be a part of state or university research pilot, as authorized by the 2014 Farm Bill, or be licensed under a state, tribal or federal program approved under the USDA Agricultural Marketing Service.

USDA Risk Management Agency Administrator Martin Barbre said in a statement the agency is looking forward to feedback from hemp producers about the pilot program.

Additionally, beginning in 2021 hemp plants will be insurable under the Nursery Crop Insurance and Nursery Value Select Pilot Crop programs.

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