Hemp is a cannabis plant, grown for its many industrial uses. It does not produce the intoxicating effects of the cannabis plant, marijuana. Hemp yields a strong fiber, used in textiles. The seed has nutritional value and can be eaten. And Cannabidiol, or CBD, can be extracted from the plant. CBD is now being used in food and dietary supplements.
While hemp and marijuana are both cannabis, hemp does not produce the same intoxicating effect marijuana does. The difference is their levels of THC, the potentially intoxicating compound. According to the USDA, hemp must contain less than .3% THC. Marijuana contains a higher level of THC, often over 10%.
Sentate Bill 57
The law decriminalizes hemp, making it a legal crop for Ohio farmers to cultivate and process. It allows for the creation of a hemp program to be administered by the Ohio Department of Agriculture. The law also sets up a licensing structure for farmers who are interested in growing the crop and those interested in processing it.
The Hemp Plan in Ohio was passed by the USDA 12/27/19. Ohio can now move forward with licensing both growers and processors starting January of 2020.
Growing and Processing Hemp Legally
Farmers will have to obtain a license to grow hemp. Licenses will also be required for hemp processors and some research facilities. The licenses are not yet available. Details on how this process will operate are currently being worked out, along with the rules and regulations regarding the cultivation and processing of hemp.
Insuring Your Hemp
For the 2020 crop year, hemp in Ohio can be covered with a Whole Farm Revenue Protection policy. Starting in 2021, hemp producers will be able to insure their hemp crop with a production plan provided:
- They are a licensed grower
- They have a contract with a licensed processor
- They have produced the crop for at least one year
Keep in mind that a high THC level in your hemp plant will NOT be consider an insurable cause of loss.
For more information on growing and insuring Hemp, please contact our office.