Flood Insurance for Farmers Act of 2025

Bill Number

H.R. 5961

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2025-11-07: Referred to the House Committee on Financial Services.

Last Updated

2026-06-11T05:06:25Z

AI-Generated Summary

Purpose

The Flood Insurance for Farmers Act of 2025 aims to make flood insurance more accessible and affordable for agricultural structures, particularly those in high-risk flood areas, by allowing limited exceptions to strict building standards and introducing flexible policy options.

Key Provisions

• Variances for Agricultural Structures: Local governments can grant variances (exceptions) from requirements to elevate or floodproof agricultural structures in special flood hazard zones (areas at high risk of flooding). These variances are only allowed if:
• They are approved by a state or local zoning authority.
• Elevating or floodproofing the structure is not practical (e.g., due to cost or feasibility).
• The structure is not in a regulatory floodway (a channel that carries floodwaters), near certain flood control structures, or in areas with high-velocity waves.
• For existing structures, repairs or improvements do not increase flood levels.
• The variance does not raise flood heights, threaten public safety, create extra public costs, or violate local laws.
• The structure has not had more than one flood insurance claim over $1,000 in the past 10 years.
• Premium Rates: Insurance premiums for structures receiving these variances will match rates for structures that are floodproofed (made water-resistant without elevation) or use similar risk-based actuarial rates (calculated based on actual flood probability).
• Umbrella Policies: The Federal Emergency Management Agency (FEMA) can offer optional "umbrella" flood insurance policies that cover multiple structures on the same property (e.g., barns, silos on a farm). These are available for commercial, residential, multifamily, and agricultural properties at full actuarial rates, but only upon policy renewal or for new applicants with multiple structures.
• Reporting Requirement: FEMA must submit a report to Congress within 5 years evaluating the umbrella policy program's implementation.

Significant Changes to Existing Law

• Amends the National Flood Insurance Act of 1968 (the main U.S. law governing flood insurance):
• Adds new rules to section 1315(a) allowing variances for agricultural structures, which were previously restricted; this prevents FEMA from penalizing communities (e.g., suspending them from the insurance program) for granting such variances if proper criteria are followed.
• Introduces a new premium rate structure in section 1308(n) tailored to variance-approved agricultural structures.
• Expands section 1306(b) to include umbrella policies, which were not previously an option for properties with multiple structures.
• These changes prioritize practicality for farming operations while maintaining overall flood risk controls.

Potential Impacts

• On Government Agencies: FEMA will need to update its administration of the National Flood Insurance Program, including monitoring variances and implementing umbrella policies, potentially increasing workload but reducing disputes over community compliance.
• On Citizens: Farmers and agricultural property owners gain easier access to affordable flood insurance, reducing financial barriers to coverage in flood-prone areas; this could lower uninsured losses from floods but might slightly increase overall program costs if claims rise.
• On International Relations: No direct impacts, as the bill focuses on domestic flood insurance.

Main Stakeholders Affected

• Farmers and Agricultural Property Owners: Primary beneficiaries, as they can now insure structures without mandatory elevation, potentially saving on construction costs and premiums.
• Local and State Governments: Gain flexibility in zoning enforcement but must adopt and enforce strict variance criteria to avoid FEMA penalties.
• FEMA and Insurers: Responsible for overseeing variances, setting rates, and offering new policies; may face administrative changes and need to assess long-term flood risks.
• Communities in Flood Zones: Benefit from continued eligibility in the insurance program without suspension risks, supporting local development.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens the balance between federal flood risk standards and local discretion, ensuring variances do not undermine the National Flood Insurance Program's goal of reducing flood damage; includes safeguards (e.g., claim limits) to prevent abuse.
• Constitutional: No apparent conflicts with federalism principles, as it empowers local authorities while maintaining federal oversight; aligns with property rights by easing regulations on agricultural land use.
• Political: Addresses needs of rural and farming communities (e.g., in California, per bill sponsors), potentially gaining bipartisan support in agriculture-heavy regions; the 5-year report allows for future adjustments based on program effectiveness, avoiding permanent shifts without evaluation.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. LaMalfa, Doug [R-CA-1]

Cosponsors (4)

Rep. Garamendi, John [D-CA-8], Rep. Valadao, David G. [R-CA-22], Rep. Harder, Josh [D-CA-9], Rep. Neguse, Joe [D-CO-2]

Recent Actions

• 2025-11-07: Referred to the House Committee on Financial Services.
• 2025-11-07: Introduced in House
• 2025-11-07: Introduced in House

Bill Versions

• Flood Insurance for Farmers Act of 2025 — issued 2025-11-07 — PDF (7 pages)