Thursday, October 15, 2020

Cannabis farmers are stuck without disaster aid or useful crop insurance because federal law disqualifies them

Farmers have had a rough two years, partly because of wild weather: derechos in the Midwest, wildfires in the South and West, and hurricanes in the Southeast. But while most can get disaster aid or crop insurance payouts, cannabis farmers have access to neither, and it's a threat to the fledgling industry.

Cannabis cultivation was authorized in the 2018 Farm Bill, but "because federal law defines marijuana as an illegal, dangerous drug, neither federal agencies nor conventional banks and major insurance companies will work with marijuana businesses even if they are legal under state law," Sophie Quinton reports for Stateline. "Nor are marijuana businesses eligible for federal disaster relief."

Though cannabis growers can buy crop insurance from local providers, one farmer told Quinton he couldn't find a policy worth the money. "Producers and industry supporters now are pushing for changes to federal relief law and seeking state disaster aid," Quinton reports.

No comments: