Following the passage of the 2018 Farm Bill in the United States, hemp (defined as having no more than 0.3% THC) was removed from the definition of cannabis in the Controlled Substances Act paving the way for the legal growing of industrial hemp.
Whilst this was good news for the hemp industry, there remain many challenges in operating a business involved in the industry. One of these challenges is securing adequate insurance cover.
Traditional crop insurers have years, if not decades of historical yield information for the crops they typically insure such as wheat and barley. With the legal farming of hemp being so recent, such data is not available. A direct consequence of this is the inability of traditional insurers to accurately develop pricing models. This situation is likely to exist for a number of years until credible data has been recorded.
There are federal insurance programs available to certain hemp farmers but these are extremely limited in scope and qualifying criteria. This leaves farmers and their investors exposed to the financial impact of a failed crop primarily due to weather related events.
Traditional crop insurers have years, if not decades of historical yield information for the crops they typically insure such as wheat and barley. With the legal farming of hemp being so recent, such data is not available. A direct consequence of this is the inability of traditional insurers to accurately develop pricing models. This situation is likely to exist for a number of years until credible data has been recorded.
There are federal insurance programs available to certain hemp farmers but these are extremely limited in scope and qualifying criteria. This leaves farmers and their investors exposed to the financial impact of a failed crop primarily due to weather related events.
To address this, Hemp Insure provides parametric insurance cover tailored to the individual farm.
In simple terms, parametric insurance pays out following the occurrence of a pre-defined event rather than indemnifying an insured for actual damage incurred. In weather terms, this may be wind exceeding a certain speed, excessive rainfall or hail of a given size and intensity.
Due to the nature of the insurance triggers, the farming history of the individual farmer or the crop in general is irrelevant. As such, this cover is available for hemp farmers in a way that traditional insurance is not.
Hemp Insure can provide cover for farms located in most parts of the world.
In simple terms, parametric insurance pays out following the occurrence of a pre-defined event rather than indemnifying an insured for actual damage incurred. In weather terms, this may be wind exceeding a certain speed, excessive rainfall or hail of a given size and intensity.
Due to the nature of the insurance triggers, the farming history of the individual farmer or the crop in general is irrelevant. As such, this cover is available for hemp farmers in a way that traditional insurance is not.
Hemp Insure can provide cover for farms located in most parts of the world.
The main perils for which cover can be provided are:
Wind
Hail
Too hot
Too cold
Too wet
Too dry