The 2018 Agriculture Improvement Act, also known as the 2018 Farm Bill, that legalized the production of industrial hemp gave Native American Tribes equal footing with states for regulatory approval in hemp production. For Tribal farmers, hemp production provides an economic opportunity to cultivate this commodity into a variety of products, such as building materials, food, health and beauty aids.

However, hemp is expensive to plant, costing upwards of $15,000 per acre.1 Taking care of it can be even harder. For one, farmers must ensure that the plant’s THC levels don’t get too high. The plants must have a THC concentration of less than 0.3% on a dry-weight basis and be produced according to a U.S. Department of Agriculture-approved Tribal or state regulatory plan.

The highs and lows of harvesting hemp

Farms must have a contingency plan for monitoring their hemp’s THC content regularly. Ideally, farmers will want to employ a seasoned agronomist who can institute controls, keep plants properly hydrated and create a regime to maintain optimal THC levels. An experienced agronomist is essential to applying the right fertilizer, water and herbicide — all critical to an optimal return on investment.

In the heat of the summer, THC levels typically remain low but increase with cold and rain. Should there be a cold spell, high rainfall — or the hemp plant was seeded late in the season and the harvest runs into the fall — THC levels could rise quickly. When this happens, farmers will have to chop down the plant to control the level and harvest the plant’s flower before it’s considered cannabis.

Another challenge that hemp farmers must deal with is the proper storage and transportation of their product. Because hemp is undistinguishable from cannabis to the naked eye, the entire biomass can’t be shipped directly from the field across state lines for fear of it being confiscated. Alternatively, farmers are shipping their hemp in smaller, unmarked loads, which forces them to hold onto the product longer than usual.

When hemp is confiscated on the side of the road — even if it is eventually returned — there could be significant lag in delivery. Proper storage becomes uncertain, and quality control can’t be maintained.

With so much uncertainty and the high cost of planting, Tribal farmers are looking to insure their risk with hemp insurance.

Protecting every step in the crop lifecycle — and beyond

As with any emerging market, the risks are everywhere — from seed to sow to sales. Because of these unknown risks, the standard federal farmer’s policy doesn’t provide any coverage for hemp crops.

Instead, you will need hemp insurance coverage that will protect each step in your hemp crop lifecycle — and beyond. This insurance consists of separate policies for harvest, extreme weather, crop storage and transportation. Tribal farmers should make sure they are covered with these individual hemp insurance policies for each aspect of their plant’s lifecycle.

Hemp crop insurance tailored to your unique needs

Through our combined expertise in agricultural and cannabis sectors, along with our long-term experience working with Tribal Nations, HUB brokers understand your unique risks. We’ve been at the forefront offering some of the first hemp crop insurance options for high-value hemp grown in the open air.

When you partner with us, you have access to insurance brokers and risk services consultants who specialize in your industry. We will help you secure the appropriate coverages and risk mitigation strategies for harvest, extreme weather, crop storage, transportation and manufacturing — along with guidance on the latest Tribal, state, provincial or federal regulations. Our goal is to equip and empower you with a risk transfer strategy so you can pursue your plans and grow your business.

Contact a HUB Tribal Insurance specialist for more information on agribusiness, cannabis and hemp insurance coverage for harvest, storage and transportation.

1 Hemp CBD Business Plans, “How Much Does It Cost to Grow Hemp?” December 11, 2023.