FARMER Act of 2025
- Bill Number
- S. 1693
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Agriculture and Food
- Status
- Introduced
- Latest Action
- 2025-05-08: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- Last Updated
- 2025-12-05T21:57:00Z
AI-Generated Summary
Federal Agriculture Risk Management Enhancement and Resilience Act of 2025 (FARMER Act of 2025) – S. 1693
Purpose
This bill aims to strengthen crop insurance programs for farmers by increasing government subsidies for certain insurance plans, making coverage more affordable and accessible. It focuses on enhancing risk management tools to help farmers protect against losses from weather, pests, or market fluctuations, while also directing a study to explore further improvements.
Key Provisions
- Premium Support for Specific Insurance Plans (Section 2): Expands federal premium subsidies for "enterprise units" (grouping multiple fields on a farm) or "whole farm units" (covering an entire farm operation) under revenue or yield protection plans. The government would cover:
- 77% of the premium for higher coverage levels (typically 80-85% of expected revenue or yield).
- 68% of the premium for slightly lower coverage levels (typically 75-80%).
- Adjustments to Supplemental Coverage Option (SCO) (Section 3): The SCO is an add-on policy that provides extra protection beyond basic individual coverage, often tied to county-level risks.
- Lowers the minimum loss threshold for SCO activation from 14% to 10% (meaning coverage kicks in sooner for smaller losses).
- Raises the maximum coverage level from 86% to 90% of county yield or revenue.
- Increases the premium subsidy for SCO from 65% to 80%, reducing out-of-pocket costs for farmers.
- Study on SCO Modifications (Section 4): Requires the Federal Crop Insurance Corporation (FCIC) to conduct or contract a study on adapting SCO for larger counties (over 1,400 square miles). The study will assess feasibility of offering coverage at levels between individual farm coverage and full county-wide protection. A report with findings and recommendations must be submitted to relevant congressional committees within one year of enactment.
Significant Changes to Existing Law
- Federal Crop Insurance Act Amendments: Modifies Section 508(e) to boost subsidies for enterprise and whole farm units, overriding prior limits on premium support for these broader coverage options.
- SCO Enhancements: Alters Section 508(c)(4)(C) to make SCO more responsive and generous, lowering entry barriers and expanding protection ceilings. The subsidy increase in Section 508(e)(2)(H) directly raises government contribution, potentially increasing program uptake.
- New Research Mandate: Adds a provision to Section 522(c), introducing the first formal study on scaling SCO for expansive geographic areas, which could lead to future program expansions.
Potential Impacts
- On Government Agencies: The FCIC (part of the U.S. Department of Agriculture) will face higher costs due to increased subsidies, potentially straining the federal crop insurance budget (already over $10 billion annually). This could require additional funding appropriations.
- On Citizens (Farmers and Rural Communities): Lowers insurance costs for producers, encouraging more to enroll in comprehensive plans and reducing financial risks from crop failures. This may improve farm resilience, stabilize rural economies, and support food supply chains, though benefits primarily accrue to insured crop farmers.
- On International Relations: No direct impacts; the bill is domestic-focused on U.S. agriculture policy.
Main Stakeholders Affected
- Farmers and Producers: Primary beneficiaries, especially those operating larger or multi-field farms using enterprise/whole farm units or SCO, as subsidies reduce premiums by 10-15% on average.
- Federal Crop Insurance Corporation (FCIC) and USDA: Responsible for implementing changes, managing increased subsidies, and conducting the required study.
- Congressional Committees: The Senate Committee on Agriculture, Nutrition, and Forestry and House Committee on Agriculture will receive the study report and oversee program adjustments.
- Insurers and Reinsurers: Private companies delivering crop insurance may see higher policy sales but also more claims processing under expanded coverage.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens the existing framework of the Federal Crop Insurance Act (from 1938) without introducing new mandates or liabilities; changes are administrative and subsidy-focused, likely compliant with federal budgeting laws.
- Constitutional: No apparent challenges; it aligns with Congress's authority under the Spending Clause to fund agricultural programs for the general welfare.
- Political: Enhances support for farm safety nets, potentially appealing to agricultural states but raising debates on federal spending (estimated additional costs in the hundreds of millions annually). The study provision promotes evidence-based policymaking, which could influence future bipartisan farm bills.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (10)
Sen. Boozman, John [R-AR], Sen. McConnell, Mitch [R-KY], Sen. Ernst, Joni [R-IA], Sen. Hyde-Smith, Cindy [R-MS], Sen. Marshall, Roger [R-KS], Sen. Justice, James C. [R-WV], Sen. Grassley, Chuck [R-IA], Sen. Fischer, Deb [R-NE], Sen. Moran, Jerry [R-KS], Sen. Cramer, Kevin [R-ND]
Recent Actions
- 2025-05-08: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- 2025-05-08: Introduced in Senate
Bill Versions
- Federal Agriculture Risk Management Enhancement and Resilience Act of 2025 — issued 2025-05-08 — PDF (4 pages)