Protecting Your Hemp Investment: Crop Insurance Essentials with Scott Colville
Can you sleep at night knowing one bad storm could wipe out your entire hemp crop?
That’s the question Scott Colville of Colville Crop Insurance asks farmers—and it’s why he’s dedicated his career to helping them manage risk. On this episode of the iHemp Hour, Scott and his son Eric joined host Dave Crabill and Blaine Bechtold to break down everything Michigan hemp farmers need to know about protecting their investment.
A Family Legacy in Farm Protection
The Colville family has been providing crop insurance to farmers in West Michigan since 1967. Scott grew up watching his father help families save their farms during tough years, and now he’s passing that tradition to Eric, who joined the business in 2020.
Their tagline says it all: “Learn More. Sleep Better.”
Hemp Insurance: What You Need to Know
The government has moved faster on hemp crop insurance than any crop in history—and that’s good news for Michigan growers. Here are the current requirements for Multi-Peril Crop Insurance (MPCI) coverage:
For CBD:
- Minimum 5 acres planted
- Must have a processor contract (critical!)
- One year of hemp growing history required
- Must be licensed with the state of Michigan
For Grain and Fiber:
- Minimum 20 acres planted
- If direct seeding: 1,200 plants per acre minimum
The Numbers That Matter
Scott shared eye-opening quotes for Ottawa County:
- Fiber coverage: $319 premium for $9,000 in coverage on 100 acres
- Grain coverage: $757 premium for $20,000+ in coverage
- CBD coverage: ~$6,000 premium for $140,000 in coverage
“If you lose your entire crop, $140,000 can help pay to plant again another year,” Scott explained. “That can help pay some bills. That’s why insurance is important.”
Weather Insurance: A Flexible Alternative
Don’t have a year of growing history yet? Weather-based insurance offers another option. You can insure against excess rainfall, frost, or other weather events during specific windows—like that critical May planting period. And here’s the kicker: the premium isn’t due until September, so you can pay from your harvest profits.
The Hot Crop Problem
One thing crop insurance does NOT cover: crops that exceed the 0.3% THC limit. That’s why iHemp Michigan and associations across the country continue advocating for raising the threshold to 1.0%. The good news? Farmers have learned to manage this risk much better, with far fewer acres “going hot” than in the early years.
Michigan’s Agricultural Powerhouse
Here’s some perspective: Michigan’s agricultural market totaled $8.2 billion in 2020, with corn, soybeans, and potatoes leading the way. With cannabis already the third-largest cash crop by revenue (approaching $3 billion this year), and hemp poised for explosive growth once feed approval comes through, the future is bright for Michigan farmers who diversify wisely.
Take Action Before March 15
The deadline for most row crop insurance decisions is March 15th. Don’t wait until it’s too late to protect your investment.
Contact Colville Crop Insurance:
- Scott: 616-560-8510 | scott@colvillecrop.com
- Eric: 616-502-9746 | eric@colvillecrop.com
Ready to join the hemp movement? Become an iHemp Michigan member today at iHempMichigan.com and get access to industry connections, educational resources, and advocacy efforts that are shaping Michigan’s hemp future.