The U.S. Department of Agriculture has updated its federal crop insurance rules for hemp, removing references to “industrial hemp” and “delta-9” THC from provisions governing hemp under its Whole-Farm Revenue Protection program.
The changes are part of a broader series of crop insurance revisions announced by USDA’s Risk Management Agency (RMA) and will take effect beginning with the 2027 crop year. The agency said its Whole-Farm Revenue Protection Pilot Policy was revised specifically to remove references to “industrial” and “delta-9.”
Under the 2026 policy, “Industrial Hemp” was defined as Cannabis sativa L. containing no more than 0.3% delta-9 tetrahydrocannabinol on a dry-weight basis. The policy also stated that hemp rendered unsalable or destroyed because its delta-9 THC concentration exceeded 0.3% was considered damaged by an uninsurable cause.
For 2027, USDA says the policy has been revised to remove references to both “industrial” and “delta-9” from its hemp provisions. The agency did not explain in its announcement whether removing the delta-9 language will materially change how THC compliance is evaluated for crop insurance purposes.
Hemp remains eligible for coverage through Whole-Farm Revenue Protection, which provides a single policy protecting revenue from commodities produced by a farm. Existing requirements include compliance with applicable federal, state or tribal regulations and, for hemp, a valid marketing contract. Hemp also remains ineligible for replant payments under the program.
The Federal Crop Insurance Corporation began implementing the broader set of policy updates with an August 31 contract change date. Approved insurance providers are required to inform producers about the changes at least 30 days before their applicable cancellation date.
