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hemp crop Insurance in Vermont

What is Hemp Crop Insurance?

Growing help could prove to be a highly profitable venture, but the work isn’t without its risks. Namely, farmers stand to lose a lot of their investment if plants are substantially damaged or destroyed. The plants themselves aren’t cheap, and the initial outlay for plants doesn’t include other expenses associated with growing them. Hemp crop insurance helps farmers in Vermont who are commercially growing this crop protect the investment they’ve made in their plants from certain covered disasters.

Hemp crop insurance is a highly specialized form of business coverage, and it’s undergone changes relatively recently (see Federal Crop Insurance). For these reasons, farmers who need this coverage should specifically seek out an insurance agent that specializes in hemp insurance. A specialized agent will be familiar with the risks encountered and protections needed, and they’ll be up to date with the latest developments in the industry.

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What Businesses in Vermont Need Hemp Insurance?

Most cultivators who commercially grow this crop in Vermont should carry hemp insurance, for few farmers could afford to recover from a major disaster that destroyed their plants. This includes both businesses cultivating plants traditionally, as well as those using hydroponic or other growing techniques.

Businesses involved in other aspects of the hemp industry, such as processing, manufacturing, distributing or testing, also generally need insurance. Their coverage needs will probably be different from cultivators’ needs, though, and a different type of policy is likely more appropriate. A specialized agent can help businesses determine what specific type of policy is most suitable for their situation.

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What Coverages Do Hemp Crop Policies Provide?

Hemp crop policies may provide a variety of protections. Depending on its terms and conditions, a particular policy may offer:

  • Commercial Property Coverage, which may protect owned land and buildings
  • Premises Liability Coverage, which may protect against common accidents occurring on a business’ property
  • Indoor Crop Coverage, which may protect plants grown in indoor facilities
  • Workers Compensation Coverage, which may protect against job-related injuries and illnesses employees sustain

Does the Federal Crop Insurance Program Cover Hemp?

There has been a sustained and strong push in the federal government to add hemp to the list of crops that are eligible for federal crop insurance. The necessary legislation wasn’t fully signed into law at the time of writing, but it was soon expected to become law. A specialized agent may probably know the state of this and any other relevant legislation.

Under the federal crop insurance program, cultivators who grow hemp would be able to purchase hemp insurance that’s subsidized by the federal government. The policies are sold by private insurers but backed by the government. The process for securing subsidized coverage would be the same as getting federal crop insurance for any other approved agricultural commodity.

Notably, the proposed legislation draws a sharp distinction between hemp and marijuana. Depending on the finalized form that’s enacted into law, only a specific strain with under a certain delta-9 tetrahydrocannabinol concentration would likely be eligible for the subsidized coverage.

How Much Does Hemp Insurance Cost?

Because this is such a young industry and the legislation regarding it is still new, rates for hemp crop policies vary quite a lot. At times, coverages also vary. In the vast majority of cases, though, having insurance is a lot less than losing all of a business’ plants would be.

Cultivators can get an accurate idea of how much coverage would cost them by talking with an independent insurance agent. Unlike captive agents, independent agents are able to compare rates from multiple insurance companies and share which companies offer the best options.

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How Can Cultivators in Vermont Get Hemp Crop Insurance?

For help finding hemp crop insurance, contact the independent agents of Paige & Campbell Insurance. Our agents have worked with a number of cultivators in Vermont, and they’re ready to assist you. With their expertise, you can be confident that the hemp policy you ultimately select offers robust coverages at an affordable price.

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