Risk Management

Industrial hemp is a new crop with limited research and grower experience. New growers will have to gain experience by growing the crop and from other growers. The market for hemp products is new and developing. Potential growers of industrial hemp need to research the markets for hemp products and the markets for raw hemp.

A big risk is in speculative production without contracts. This can lead to a market oversupply and price reduction for all producers. This over supply may not be marketable for a few years. Quality could decline forcing the grain to be sold as birdseed at a much reduced price.

Manitoba Agricultural Services Corporation (MASC) or formerly Manitoba Crop Insurance Corporation does mitigate production risk by providing crop insurance for hemp grain production. Full production coverage is available for hemp seeded until June 15. Extended coverage with a reduction of coverage by 20% is available until June 20. Contact MASC for coverage levels. Additional hail insurance is available. Production insurance for fibre only crops is currently not available at this time. Contact your local crop insurance agent for complete details. Additional information is available at the MASC Web Site .