Sponsors (11)
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Adds targeted changes to the federal crop insurance program to provide premium support when a producer elects enterprise or whole‑farm units for certain individual farm-based revenue protection or yield protection plans, updates rules for the supplemental coverage option (SCO) including its coverage-level and premium-subsidy rules, and requires a one‑year study on whether SCO can be offered for very large counties (those larger than 1,400 square miles) or at intermediate unit sizes between county and individual coverage. The Federal Crop Insurance Corporation (the Corporation) will pay part of the premium for specified coverage choices and must report study findings and recommendations to the congressional agriculture committees within one year of enactment. These changes affect how crop insurance premium subsidies are calculated and administered, create potential new coverage options for producers in very large counties, and direct the Corporation to analyze alternative unit sizes for SCO coverage and report back with recommendations.
Adds a new paragraph (20) to subsection (c) requiring the Corporation to carry out (or contract for) a study on the feasibility of modifying the supplemental coverage option to provide coverage for counties larger than 1,400 square miles at levels smaller than county-wide and greater than individual coverage, and to report results and recommendations to congressional agriculture committees.
Modifies subsection 1508(c)(4)(C) by striking and replacing the text of clause (ii) and by striking and replacing the text of clause (iii)(I).
Amends subsection 1508(e)(2)(H)(i) by striking existing text and inserting new text (relating to premium subsidy).
Amends section 508(e) by redesignating existing paragraph (8) as paragraph (9); updating the text of paragraph (9) to insert a reference to the newly added paragraph (8); and inserting a new paragraph (8) after paragraph (7) that sets specific premium support factors (77% and 68%) for certain individual farm-based revenue protection or yield protection plans elected on enterprise or whole farm units.
Redesignate existing paragraph (8) as paragraph (9) in Section 508(e) of the Federal Crop Insurance Act.
In the paragraph now numbered (9), replace the text "and (7)" with "(7), and (8)" to update the cross-reference to the newly added paragraph.
Insert new paragraph (8) entitled "Premium support for certain plans of insurance" which directs that, notwithstanding subparagraphs (F) and (G) of paragraph (2), for an individual farm-based revenue protection or yield protection plan of insurance elected on the basis of enterprise units or whole farm units, the Corporation shall pay part of the premium as provided under those subparagraphs, except that the applicable factor for the premium support is specified in subparts (A) and (B).
For the coverage level described in paragraph (2)(F), set the applicable premium support factor at 77 percent.
For the coverage level described in paragraph (2)(G), set the applicable premium support factor at 68 percent.
Primary impacts fall on agricultural producers (farmers) who use federal crop insurance and on the crop insurance program administration. Producers who choose enterprise or whole‑farm units for certain individual revenue- or yield‑protection plans would receive statutory premium support, lowering their out‑of‑pocket premium costs for those specific elections; that could encourage broader use of enterprise/whole‑farm units. Changes to SCO coverage-level and premium-subsidy rules will alter the cost and availability of SCO for producers and could shift which farms find SCO attractive. Insurance program administrators (Federal Crop Insurance Corporation / Risk Management Agency) must update regulations, premium computation systems, and producer materials, and they will conduct or oversee the required study. The study on SCO for very large counties could lead to new unit-size options for producers in geographically large counties, potentially improving risk management where county-level SCO is impractical. Budgetary impact: authorizing additional premium support can increase program outlays over baseline crop insurance subsidy spending; the summary does not specify offsets or exact cost estimates. Equity and distributional effects depend on details (e.g., percent factors and the final SCO language): larger operations that benefit from enterprise/whole‑farm unit aggregation may capture a disproportionate share of benefits, while producers in very large counties could gain options if the study supports new unit sizes. Implementation will require regulatory work and likely IT and administrative updates at USDA/RMA.
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FARMER Act
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Introduced May 8, 2025 by John Hoeven · Last progress May 8, 2025
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Introduced in Senate