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USDA Says Hemp Farmers Now Qualify For Federal Crop Insurance

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The U.S. Department of Agriculture (USDA) announced on Tuesday that hemp farmers operating under pilot programs authorized through the 2014 Farm Bill are now eligible for federal crop insurance for the 2020 planting season, while those who cultivate hemp under broader federal legalization in the 2018 version of the legislation can obtain coverage after regulations are developed.

Producers who are growing hemp through a research program via the 2014 bill’s provisions can obtain Whole-Farm Revenue Protection (WFRP), an insurance program that covers up to $8.5 million in revenue. Only farmers producing hemp for fiber, flower or seeds will qualify.

“Numerous producers are anxious for a way to protect their hemp crops from natural disasters,” USDA Risk Management Agency (RMA) Administrator Martin Barbre said in a press release. “The WFRP policy will provide a safety net for them. We expect to be able to offer additional hemp coverage options as USDA continues implementing the 2018 Farm Bill.”

The latest version of agriculture spending legislation, which President Trump signed into law in December 2018, federally legalized hemp and its derivatives, but USDA said it must still develop regulations under that bill before extending coverage to all applicable hemp businesses.

USDA emphasized that cannabis containing more than 0.3 percent THC will not be covered under the plan and added that “hemp will not qualify for replant payments under WFRP.”

The notice also stated that USDA’s Agricultural Marketing Service (AMS) is “formulating regulations that will include specific details for both a USDA plan for the production of hemp and a process for submission of state, territorial or tribal plans to USDA.” Those regulations will be published in the Federal Register by the year’s end, the department said.

“Once rulemaking is complete, RMA, the Farm Service Agency (FSA), the Natural Resources Conservation Service and other USDA agencies will share eligibility information on their programs, which include safety net, conservation, farm loan and disaster assistance programs. This includes FSA looking at additional coverage options through its Noninsured Crop Disaster Assistance Program and through RMA-administered crop insurance.”

On Monday, Agriculture Secretary Sonny Perdue said in a meeting with farmers in Virginia that his department will be “working on the data as quickly as possible” to formulate the hemp crop insurance program.

A separate USDA site describes the types of regulations AMS is developing, which includes THC testing mechanisms, policies for the disposal of plants, annual inspections and law enforcement compliance.

Since the passage of the 2018 Farm Bill, lawmakers have put significant pressure on federal agencies to implement regulations for the crop and its derivatives such as CBD. And in recent weeks, several agencies have followed through on those requests.

For example, the Federal Credit Union Administration announced earlier this month that credit unions are allowed to service hemp businesses. And last week, the Environmental Protection Agency said it is reviewing applications for pesticides to be authorized for use on the plant.

Senate Majority Leader Mitch McConnell (R-KY) has paid particularly close attention to the crop insurance issue. Despite coverage being guaranteed through the Farm Bill, he inserted language into disaster relief legislation in May that also secures insurance options for hemp farmers.

A bipartisan coalition of senators also introduced a bill in July that would provide broader marijuana businesses with access to federal property, casualty and title insurance coverage.

Credit Unions Can Bank Hemp Businesses, Federal Agency Announces

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Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Kyle Jaeger is Marijuana Moment's Los Angeles-based associate editor. His work has also appeared in High Times, VICE and attn.

Politics

New York Legal Marijuana Push ‘Effectively Over’ For 2020, Governor Says

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New York Gov. Andrew Cuomo (D) conceded on Saturday that it’s unlikely marijuana will be legalized in the state this year.

“Marijuana and the gig economy were two of the more complicated initiatives that we wanted to work through that we didn’t get a chance to do,” he said in response to a question about which policy issues he would’ve liked to tackle in the annual budget bill that passed this week.

“Is the session effectively over? It’s up to the legislature, but I think it’s fair to say it’s effectively over,” he added, noting that several state lawmakers have been infected with coronavirus.

Please visit Forbes to read the rest of this piece.

(Marijuana Moment’s editor provides some content to Forbes via a temporary exclusive publishing license arrangement.)

Photo elements courtesy of Metropolitan Transportation Authority and Carlos Gracia.

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Congresswoman Wants Ban On DC Marijuana Sales Lifted Through Coronavirus Legislation

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A congresswoman is calling on the government to end a policy prohibiting Washington, D.C. from legal marijuana sales, arguing that the jurisdiction is in particular need of tax revenue from cannabis commerce due to the coronavirus outbreak.

Rep. Eleanor Holmes Norton (D-DC) has repeatedly condemned the congressional rider barring the District of Columbia from allowing retail sales that has been extended each year since 2014, shortly after local voters approved a ballot measure to legalize low-level possession and home cultivation. But given the need for resources to combat the pandemic, she said a reversal of the provision should be included in the next COVID-related relief bill.

“At this moment of unparalleled need, D.C. should be able to collect tax revenue from all available sources, like every other jurisdiction, including from recreational marijuana, which is believed to be widely used in the District,” the congresswoman said in a press release on Friday, adding that D.C. was shorted in the last stimulus because Congress treated it as a territory rather than a state.

“While I am working for a retroactive fix in the next coronavirus bill, it is imperative that Congress also repeal the D.C. recreational marijuana commercialization rider in the next bill to help D.C. shore up its finances,” she said. “It is beyond unreasonable that congressional interference keeps only the District from commercializing recreational marijuana, while all other jurisdictions are free to do so.”

“Bringing the District in line with other jurisdictions would create a critical source of tax revenue in our time of need.”

Last year, the House approved an appropriations bill that excluded the D.C. rider, but it was included in the Senate version and ultimately made its way into the final package that the president signed. The cannabis commerce ban was also included in President Trump’s budget proposal earlier this year.

“True to form, Representative Eleanor Holmes Norton continues to be one of the best allies to the cannabis reform movement,” Justin Strekal, political director for NORML, told Marijuana Moment. “During this unprecedented COVID-19 outbreak, it is critical that lawmakers analyze and reform any and every aspect of public policy to mitigate the health crisis and build a foundation for a strong recovery.”

“As the majority of states that regulate cannabis have deemed the industry essential to the continued functioning of their jurisdictions, the continued congressional prohibition of the District of Columbia enacting it’s own adult-use program becomes even more ridiculous,” he added.

Norton, in an interview about her push, said that the congressionally mandated prohibition on sales doesn’t prevent people from accessing cannabis but does block the city from collecting tax revenue.

“You can buy two ounces but, by the way you’ve got to do that on the black market,” she told WUSA-TV. “But there’s nobody to tax it. And I’m simply trying to get the taxes the District is due for merchandise, in this case marijuana that’s being consumed readily in the District of Columbia.”

Legislative priorities for Congress have shifted significantly as lawmakers attempt to address the outbreak, and that’s meant putting some reform efforts on hold. However, the issue isn’t being ignored entirely, and it’s possible that other members may look to attach modest marijuana proposals to additional coronavirus legislation.

For example, Rep. Katherine Clark (D-MA) said this week that U.S. Department of Veterans Affairs policy preventing its doctors from recommending medical cannabis in legal states puts service members at risk in Massachusetts because the state is shuttering recreational shops (but not medical dispensaries) and some veterans fear registering as patients out of concern that they could lose federal benefits.

Eleven senators wrote a letter to Appropriations Committee leadership asking that they allow small cannabis businesses to access federal loans and disaster relief programs. While the lawmakers said it should be enacted through an annual spending bill, advocates have argued that the policy change should be pursued through coronavirus legislation since these businesses are facing challenges just like those experienced by many other companies during the pandemic.

Eleven Senators Push To Let Marijuana Businesses Access Federal Loan Programs

Photo courtesy of WeedPornDaily.

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North Dakota Activists Say Marijuana Legalization Initiative Unlikely In 2020 Due To Coronavirus

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North Dakota activists announced on Thursday that they are suspending their campaign put marijuana legalization on the November ballot due to the coronavirus outbreak.

In a Facebook post, Legalize ND said “we are going to have to face a few hard realities going forward” as businesses are shuttering, public events are being cancelled and individuals are encouraged to shelter in place. The pandemic means in-person signature gathering can’t take place, and the state does not allow for alternative signing options such as by mail or online.

“Due to the virus all of our major avenues for signature collection have been cancelled or indefinitely postponed, and going door to door is not safe for both those knocking and those getting knocked,” the group said. “Businesses will continue to collect, but we don’t want to create another vector for the coronavirus. As a result, at this time if something major doesn’t change we will not be able to make the 2020 ballot.”

Legalize ND said there’s no way for state policies related to signature gathering to be changed ahead of the November election. They needed to collect 13,452 valid signatures from voters before July 6 in order to qualify. In all likelihood, the campaign said it would have to shift its focus to the July 2022 primary election.

“This isn’t the solution we want, but given the situation it is what will have to happen,” the post states. “Stay safe, and hopefully we can make a major push when the quarantine ends.”

The proposed initiative would allow individuals to purchase and possess up to two ounces of cannabis. Unlike a much more far-reaching measure the same group pushed in 2018 that included no possession or cultivation limits, which voters rejected, this version would prohibit home growing, impose a 10 percent excise tax and establish a regulatory body to approve licenses for marijuana businesses.

North Dakota voters approved a medical cannabis initiative in 2016.

The coronavirus outbreak has dealt several blows to drug policy reform efforts in recent weeks.

California activists for campaigns to amend the state’s legal cannabis program and legalize psilocybin mushrooms are asking for a digital signature option.

Likewise in Washington, D.C., advocates for a measure to decriminalize psychedelics asked the mayor and local lawmakers to accept online signatures for their ballot petition.

An effort to legalize medical cannabis in Nebraska is facing similar signature gathering challenges. A campaign to legalize cannabis in Missouri is also in jeopardy.

In Oregon, advocates for a measure to decriminalize drug possession and a separate initiative to legalize psilocybin for therapeutic purposes have suspended in-person campaign events amid the pandemic.

In New York, Gov. Andrew Cuomo (D) recently conceded that legalization was “not likely” going to happen through the budget, as he hoped. Coronavirus shifted legislative priorities, and comprehensive cannabis reform seems to have proved too complicated an issue in the short-term.

Idaho activists announced on Thursday that they are suspending their campaign, though they are still “focusing on distributing petitions through online download at IdahoCann.co and encouraging every volunteer who has downloaded a petition to get them turned in to their county clerk’s office by mail, regardless of how many signatures they have collected.”

Finally, in Arizona, a legalization campaign is petitioning the state Supreme Court to instruct the secretary of state to allow individuals to sign ballot petitions digitally using an existing electronic system that is reserved for individual individual candidates seeking public office.

Virginia Groups Push Governor To Amend Marijuana Decriminalization Bill On His Desk

Photo courtesy of Philip Steffan.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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