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Revises the definition of 'beginning farmer or rancher' by changing the referenced maximum number of crop years from 5 to 10.
Revises the percentage-point adjustment provision: replaces a prior fixed '10 percentage points' formulation with a new subparagraph (B) that specifies graduated percentage-point increases by reinsurance year (15 points for each of the first and second years; 13 for the third; 11 for the fourth; and 10 for each of the fifth through tenth reinsurance years).
Removes subparagraph (F) from 1522(c)(7) by striking that subparagraph.
Extends the period during which a farmer or rancher qualifies as a "beginning" producer from 5 crop years to 10 crop years and makes the same extension for "veteran" producers. It also raises the extra reinsurance percentage points the Federal Crop Insurance Corporation provides for beginning and veteran producers during their first ten reinsurance years, with larger adjustments in the early years and a 10-point adjustment for years 5–10, and removes an obsolete statutory cross-reference to conform with these changes. The changes increase federal reinsurance support for newer and veteran producers, aiming to improve access to and stability of crop insurance for those groups; the bill does not specify an effective date in the provided text.
The bill strengthens and lengthens reinsurance benefits for beginning and veteran farmers to improve early-year financial stability and farm establishment, but it increases federal costs and risks diluting resources or creating incentive distortions without offsetting budget increases.
Beginning and veteran farmers and ranchers: the bill extends the 'beginning' and 'veteran' designation from 5 to 10 crop years, giving them a longer window to access programs and benefits targeted to new and veteran producers.
Beginning and veteran producers: the bill provides stronger, tiered reinsurance support (larger point adjustments in the earliest reinsurance years and a 10-percentage-point advantage through years 5–10), which lowers insurance costs, improves coverage, and reduces financial risk for new producers.
Beginning and veteran producers: concentrating greater reinsurance support in the earliest years helps new or transitioning operations better establish themselves and manage early losses.
Taxpayers and the federal budget: larger and longer reinsurance adjustments will increase government outlays, raising long-term fiscal costs.
All eligible producers: extending 'beginning' and 'veteran' status to 10 crop years could dilute program resources per participant if overall program funding is not increased.
Beginning producers: continued elevated reinsurance support for a longer period may provide benefits to operators who are no longer truly 'beginning,' potentially distorting producers' insurance-purchasing incentives.
Participating insurers: the tiered schedule and changed reinsurance allocations may shift risk distribution and add administrative complexity, affecting insurer participation or program costs.
Amends 7 U.S.C. 1502(b)(3) by replacing the term '5 crop years' with '10 crop years' to extend the period a producer is considered a beginning farmer or rancher.
Amends 7 U.S.C. 1502(b)(14)(B) by replacing '5 years' with '10 crop years' in clause (ii) and replacing '5-year' with '10-year' in clause (iii) to extend the veteran farmer and rancher definition period to 10 crop years.
Amends 7 U.S.C. 1508(e)(8) to change how the additional reinsurance percentage for beginning and veteran farmers and ranchers is specified, replacing a fixed '10 percentage points greater than' formula with a schedule of percentage-point adjustments.
Requires the reinsurance percentage advantage for beginning and veteran producers to follow a tiered schedule over their reinsurance years, as specified in 7 U.S.C. 1508(e)(8)(B).
Specifies the percentage-point adjustments: 15 percentage points for each of the first and second reinsurance years; 13 percentage points for the third reinsurance year; 11 percentage points for the fourth reinsurance year; and 10 percentage points for each of the fifth through tenth reinsurance years for eligible beginning or veteran producers.
Primary effects: Farmers and ranchers who are early in their careers (beginning producers) and those who are veterans will remain eligible for special "beginning" or "veteran" producer treatment for a longer period (10 crop years rather than 5). That extended eligibility and the increased extra reinsurance percentage points mean the Federal Crop Insurance Corporation will provide greater reinsurance support for those producers during their first ten reinsurance years. Practically, this can improve availability and affordability of crop insurance for these groups by reducing insurer risk exposure and encouraging insurer participation or favorable underwriting for those policies.
Secondary effects: The federal government (through FCIC/USDA) may face higher reinsurance outlays or differently timed fiscal costs because more reinsurance support is provided and for a longer period. Private crop insurance companies will see adjustments in their reinsurance arrangements and accounting; insurers could experience reduced downside risk when covering beginning and veteran producers. Rural communities and family farms that rely on these producers may see improved financial stability. The administrative burden to implement the change is moderate: FCIC must update reinsurance schedules, guidance, and insurer contracts. The text provided does not set an effective date, so timing for benefits and costs depends on when the change is enacted and implemented.
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Referred to the House Committee on Agriculture.
Introduced March 14, 2025 by Randy Feenstra · Last progress March 14, 2025
Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.
Referred to the House Committee on Agriculture.
Introduced in House