FARMER Act
- Bill Number
- H.R. 3283
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Agriculture and Food
- Status
- Introduced
- Latest Action
- 2025-05-08: Referred to the House Committee on Agriculture.
- Last Updated
- 2025-12-05T06:48:03Z
AI-Generated Summary
Purpose
The Federal Agriculture Risk Management Enhancement and Resilience Act (FARMER Act), H.R. 3283, aims to strengthen crop insurance programs for U.S. farmers by increasing government subsidies for certain insurance plans. This helps farmers manage financial risks from crop losses due to weather, pests, or market changes, making insurance more affordable and promoting agricultural stability.
Key Provisions
- Short Title: The bill is titled the "Federal Agriculture Risk Management Enhancement and Resilience Act" or "FARMER Act."
- Premium Support for Specific Plans: Adds a new provision to the Federal Crop Insurance Act requiring the Federal Crop Insurance Corporation (a government entity that oversees crop insurance) to subsidize premiums for farm-based revenue protection or yield protection plans when farmers choose "enterprise units" (grouping multiple fields) or "whole farm units" (covering the entire farm). The subsidy covers 77% of the premium for higher coverage levels and 68% for lower ones.
- Adjustments to Supplemental Coverage Option (SCO): SCO is an add-on insurance that protects against widespread losses in a county. The bill lowers the minimum coverage trigger from 14% to 10% of expected losses, raises the maximum protection level from 86% to 90% of county yields, and increases the government premium subsidy from 65% to 80%.
- Required Study: Directs the Federal Crop Insurance Corporation to conduct or contract a study on expanding SCO for large counties (over 1,400 square miles) to offer coverage options between individual farm-level and full county-wide protection. A report with findings and recommendations must be submitted to relevant congressional agriculture committees within one year of enactment.
Significant Changes to Existing Law
- Introduces premium subsidies for enterprise and whole farm units in revenue/yield protection plans, which were previously not subsidized at these rates under the Federal Crop Insurance Act (7 U.S.C. 1508(e)).
- Modifies SCO parameters in the same Act (7 U.S.C. 1508(c)(4)(C) and (e)(2)(H)) to expand eligibility and increase subsidies, making this optional add-on more generous and accessible compared to current rules that limit coverage triggers and subsidy levels.
- Adds a new study requirement to Section 522(c) of the Act (7 U.S.C. 1522(c)), focusing on feasibility for larger geographic areas, which did not exist before.
Potential Impacts
- On Government Agencies: Increases costs for the Federal Crop Insurance Corporation and the U.S. Department of Agriculture (USDA), as higher subsidies mean more federal spending (estimated in billions annually for crop insurance overall). The required study may lead to future program expansions.
- On Citizens: Primarily benefits farmers by lowering out-of-pocket insurance costs, potentially reducing financial losses from crop failures and supporting rural economies. Taxpayers may face higher federal expenditures without direct benefits.
- On International Relations: No direct impacts; the bill focuses on domestic agriculture without addressing trade, imports, or foreign policy.
Main Stakeholders Affected
- Farmers and Producers: Primary beneficiaries, especially those with larger operations using enterprise or whole farm units, as they gain access to higher subsidies and broader SCO protection.
- Crop Insurance Providers: Private companies approved by the government to sell policies may see increased demand and participation due to more attractive subsidized options.
- Federal Government and Taxpayers: Bears the cost of expanded subsidies, affecting USDA budgeting and congressional oversight of agricultural programs.
- Rural Communities: Indirectly supported through enhanced farm resilience, which could stabilize local jobs and food production.
Notable Legal, Constitutional, or Political Implications
- Legal: Builds on the existing Federal Crop Insurance Act without creating new mandates; changes are administrative and subsidy-focused, likely facing no major legal challenges as they align with Congress's authority over agricultural spending (under Article I, Section 8 of the U.S. Constitution).
- Constitutional: No apparent issues; the bill involves spending for the general welfare, a standard congressional power.
- Political: Enhances support for agricultural constituencies in farming states, potentially influencing elections and farm bill negotiations. The study provision promotes evidence-based policymaking but could spark debates over program costs amid federal budget pressures.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (7)
Rep. Fischbach, Michelle [R-MN-7], Rep. Smith, Adrian [R-NE-3], Rep. Van Orden, Derrick [R-WI-3], Rep. Bacon, Don [R-NE-2], Rep. Newhouse, Dan [R-WA-4], Rep. Jackson, Ronny [R-TX-13], Rep. Feenstra, Randy [R-IA-4]
Recent Actions
- 2025-05-08: Referred to the House Committee on Agriculture.
- 2025-05-08: Introduced in House
- 2025-05-08: Introduced in House
Bill Versions
- Federal Agriculture Risk Management Enhancement and Resilience Act — issued 2025-05-08 — PDF (4 pages)