Finalized Federal Rules Can Help Hemp Farmers Gain Access To USDA Programs

Finalized Federal Rules Can Help Hemp Farmers Gain Access To USDA Programs

The new global hemp production norms that have come into effect have special federal protections for the yield. By 2020s growing year, the federally approved production programs gave cultivators licenses to have access to disaster assistance, federal loans, conservation programs, and crop insurance that the farmers have under the US Department of Agriculture’s agencies. The USDA’s new interim rule for the hemp manufacture can help hemp farmers become eligible for the programs under Risk Management Agency (RMA), the Farm Service Agency (FSA), and Natural Resources Conservation Service (NRCS). American Indian tribes could also receive federal approval for hemp production.

USDA officials have announced that the farmers cultivating hemp for fiber, flower, or seeds can purchase federal crop insurance via the RMA. The farmers will have to prove farm income if they want to purchase Whole Farm Revenue Protection policies. RMA is planning for other insurance options for hemp producers. The producers unable to access crop insurance can buy the FSA’s Noninsured Crop Disaster Assistance, which provides insurance coverage during natural calamities. The USDA crop insurance programs do not cover up for the crops destroyed beyond 0.3% THC limit, even if it was caused by factors like temperature changes. Congress has declared that 0.3% and below THC will be the limit for hemp in the US and producers will have to comply with it.

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The FSA’s loan programs include:

  • Operating loans;
  • Ownership loans;
  • Beginning farmer loans;
  • On-farm storage loans.

Crop insurance programs, farm loans, and other USDA programs provide equal opportunities to the farmers. Likewise, by the year-end, state officials along with Georgia farmers prepare to submit proposed regulations to the federal government for hemp cultivation. By spring, Georgia will legally start raising the crop. According to Georgia’s proposed hemp rules, farmers can distribute hemp to only state-licensed processing firms. The US Department of Agriculture is planning on approving the proposal with 60 Days of submission and the moment it is approved, Georgia will propose a final set of rules after a 30-day public comment period.

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