Hemp Cultivator Bond

Bond Penalty: Varies by State

Per the Commissioner of the Food and Drug Administration, Scott Gottlieb M.D., "The Agriculture Improvement Act of 2018 changes certain federal authorities relating to the production and marketing of hemp, cannabis derivatives with extremely low (less than 0.3 percent on a dry weight basis) concentrations delta-9-tetrahydrocannabinol (THC). These changes include removing hemp from the Controlled Substances Act, which means that it will no longer be an illegal substance under federal law." This means a lot to the insurance sector, especially for those underwriters that will offer hemp cultivator surety bonds. The Agricultural Marketing Service has been named as the lead USDA agency that will administer a new USDA Hemp Production Program. Parties interested in the Farm Bill hemp program may learn more here.

Hemp Production Program
and
Hemp Operations Q&As

So, hemp is now legal to cultivate, handle and distribute at the "federal" level however many states maintain prohibitions on the same. If you wish to operate in the hemp industry it is vital that you carefully review the statutes that regulate the activity. The National Conference of State Legislatures maintains a helpful database of the various state laws that affect the industry. In those states where hemp is permitted, licensing is generally regulated by the respective departments of agriculture. Those licensing rules often require hemp producer surety bonds from cultivators, processors, handlers and dealers. For example, hemp industry participants in Colorado are required to file a Colorado Commodity Dealer or Handler Bond to operate in this space. Again, careful research of the pertinent laws is imperative. The following entities will help in identifying those codes.

Applying for a hemp cultivator bond should be accomplished through a surety underwriter with knowledge and experience with the agricultural sector and more specifically cannabis/hemp businesses. National surety bond leader, Surety One, Inc. offers both surety and fidelity bonds needed by farm trade professionals and hemp operators in every state where they are required. Questions about an industrial hemp bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat. Industrial hemp and CBD product legalization will create enormous economic opportunities for farmers and agricultural product intermediaries. We are available to help you understand the hemp surety bond process specific to your need.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

What We Need From You

Additional Attachments

  • Current financial statement if bond in excess of $15,000