[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2435 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2435
To amend the Federal Agriculture Improvement and Reform Act of 1996 to
assist farmers relying on the noninsured crop disaster assistance
program by lowering the cost of purchasing coverage, reducing paperwork
burdens, and increasing payouts under that program, and to incentivize
farmers to transition gradually to a comprehensive insurance policy
under the whole farm risk management insurance plan by offering
progressive premium discounts on a commitment to purchase a whole farm
plan of insurance.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 27, 2025
Mrs. Hayes (for herself, Mr. Larson of Connecticut, Mr. Courtney, Ms.
DeLauro, and Mr. Himes) introduced the following bill; which was
referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To amend the Federal Agriculture Improvement and Reform Act of 1996 to
assist farmers relying on the noninsured crop disaster assistance
program by lowering the cost of purchasing coverage, reducing paperwork
burdens, and increasing payouts under that program, and to incentivize
farmers to transition gradually to a comprehensive insurance policy
under the whole farm risk management insurance plan by offering
progressive premium discounts on a commitment to purchase a whole farm
plan of insurance.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Save Our Small Farms Act of 2025''.
SEC. 2. ADMINISTRATION AND OPERATION OF NONINSURED CROP ASSISTANCE
PROGRAM.
Section 196 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7333) is amended--
(1) in subsection (a)(1)(C)--
(A) in the matter preceding clause (i), by
inserting ``best facilitates'' after ``assistance
program that'';
(B) in clause (i)--
(i) by striking ``best facilitates the use
of that'' and inserting ``the use of those'';
and
(ii) by striking ``and'' at the end;
(C) in clause (ii)--
(i) by striking ``ensures the availability
of that'' and inserting ``the public
availability of those''; and
(ii) by striking the period at the end and
inserting a semicolon; and
(D) by adding at the end the following:
``(iii) the expansion of crops listed on
the national crop table of the Agency with a
local average market price;
``(iv) the voluntary graduation of program
participants to the whole farm risk management
insurance plan developed under section
522(c)(7) of the Federal Crop Insurance Act (7
U.S.C. 1522(c)(7)); and
``(v) the establishment of pilot projects
for purposes of addressing emerging needs of
producers and collecting data to support the
development of policies or plans of insurance
offered under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.).'';
(2) in subsection (b), by striking paragraph (4) and
inserting the following:
``(4) Streamlined application process.--
``(A) Definition of whole farm plan.--In this
paragraph, the term `whole farm plan' means the whole
farm risk management insurance plan developed under
section 522(c)(7) of the Federal Crop Insurance Act (7
U.S.C. 1522(c)(7)).
``(B) Establishment.--
``(i) In general.--The Secretary shall
establish a streamlined process for the
submission of records and acreage reports under
paragraphs (2) and (3), respectively, for--
``(I) diverse production systems,
such as those typical of urban
production systems;
``(II) other small-scale production
systems; and
``(III) direct-to-consumer
production systems.
``(ii) Inclusions.--The streamlined process
established under clause (i) shall include--
``(I) reduced acreage report
requirements; and
``(II) allowing the submission to
the Secretary of 2 reports per year so
as to accommodate later acreage
reporting.
``(C) Revenue-based option.--
``(i) Establishment.--Notwithstanding
paragraphs (2) and (3) or subsection (a)(1)(A),
the Secretary shall establish a streamlined
revenue-based coverage option that is
available, on a voluntary basis, to any
producer eligible for assistance under this
section.
``(ii) Submission of historical revenue.--
The Secretary shall accept the Internal Revenue
Service Tax Form Schedule F, or successor
forms, as sufficient for the establishment of
historical adjusted revenue, subject to the
condition that approved insurance providers may
request additional verifiable records in cases
where there is documented evidence, made clear
to the applicant, that farm tax records are
incomplete.
``(D) On-ramp to whole farm plan.--
``(i) In general.--In the case of a
producer using diverse production systems
described in subparagraph (B)(i) that may be
eligible for the whole farm plan, the
Secretary, acting through the Administrator of
the Agency, shall establish a streamlined
revenue-based option under the noninsured crop
disaster assistance program under this section
to assist the producer to transition, on a
voluntary basis, from the noninsured crop
disaster assistance program under this section
to the whole farm plan. The Secretary may
provide for such other options as may be
necessary to assist producers with such a
transition who are unable to purchase a whole
farm plan.
``(ii) Requirements.--The streamlined
revenue-based option established under clause
(i) shall offer a premium discount of--
``(I) 25 percent for the first crop
year for which a producer--
``(aa) certifies that the
producer will transition from
the noninsured crop disaster
assistance program under this
section to the whole farm plan
not later than 3 years after
the date of the certification;
and
``(bb) provides revenue
history with respect to that
crop year;
``(II) 50 percent for the crop year
following the crop year described in
subclause (I) if the producer--
``(aa) certifies that the
producer will transition from
the noninsured crop disaster
assistance program under this
section to the whole farm plan
not later than 2 years after
the date of the certification;
and
``(bb) provides revenue
history with respect to that
crop year; and
``(III) 50 percent for the crop
year following the crop year described
in subclause (II) if the producer--
``(aa) purchases insurance
under the whole farm plan not
later than 1 year after the
date of the certification; and
``(bb) provides revenue
history with respect to that
crop year.
``(iii) Tax form schedule f.--The Secretary
shall accept the Internal Revenue Service Tax
Form Schedule F (or a successor form) with
respect to a producer for purposes of
establishing revenue history under clause (ii).
``(iv) Revenue history sharing.--The
Secretary shall submit to the Federal Crop
Insurance Corporation the revenue history
submitted to the Secretary pursuant to clause
(ii).
``(E) Rulemaking.--Not later than 90 days after the
date of the enactment of the Save Our Small Farms Act
of 2025, the Secretary shall issue regulations to
ensure that premium discounts under this paragraph are
only available to producers who transition to a whole
farm plan, as described in subparagraph (D)(i).'';
(3) in subsection (c), by adding at the end the following:
``(5) Notice of certain losses.--Notwithstanding any other
provision of law (including regulations), a producer of a hand-
harvested or rapidly deteriorating crop may submit to the
Secretary notification of a loss of that crop 120 hours or more
after the loss in order to be eligible for assistance under
this section.
``(6) Appraisal of loss.--
``(A) In general.--In any case in which an
appraisal of crop acreage is requested by a producer or
determined to be necessary by the Secretary for a year
in which a notice of loss is filed under this
subsection, particularly in any case in which a loss
adjuster is not available within 72 hours of the
notice, the Secretary shall permit the following
alternatives to an in-person appraisal by a loss
adjuster:
``(i) Remote appraisal, including time-
stamped photographs, drone footage, and other
technology applications.
``(ii) Appraisal by field office staff of
the Agency with requisite training, in
conjunction with a remote appraisal under
clause (i).
``(B) Training.--The Secretary shall require field
office staff to attend noninsured crop disaster
assistance appraisal training for purposes of
subparagraph (A)(ii).'';
(4) in subsection (e)(3), by striking ``65 percent'' and
inserting ``100 percent'';
(5) in subsection (i)(2)--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) notwithstanding subparagraphs (A) and (B), in
the case of a limited resource, beginning, or socially
disadvantaged farmer, as determined by the Secretary, a
veteran farmer or rancher (as defined in section
2501(a) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279(a))), or a producer
participating in the streamlined revenue-based option
pursuant to subsection (b)(4)(C), $600,000.'';
(6) in subsection (k)(2)--
(A) by striking ``defined by the Secretary, or a
veteran'' and inserting ``determined by the Secretary,
a veteran''; and
(B) by inserting ``, or a producer participating in
the streamlined revenue-based option pursuant to
subsection (b)(4)(C)'' before the period at the end;
(7) in subsection (l), by striking paragraph (3) and
inserting the following:
``(3) Premium discount.--The coverage made available under
this subsection shall be available to limited resource,
beginning, or socially disadvantaged farmers, as determined by
the Secretary, veteran farmers or ranchers (as defined in
section 2501(a) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279(a))), and producers
participating in the streamlined revenue-based option pursuant
to subsection (b)(4)(C), in exchange for a premium that is 25
percent of the premium determined under paragraph (2).''; and
(8) by adding at the end the following:
``(m) Delivery.--The Secretary shall collaborate with outreach and
technical assistance providers, extension offices, and State
departments of agriculture to advertise the noninsured crop disaster
assistance program under this section, particularly to limited
resource, beginning, or socially disadvantaged farmers, as determined
by the Secretary, veteran farmers or ranchers (as defined in section
2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 2279(a))), and producers eligible to participate in the
streamlined revenue-based option pursuant to subsection (b)(4)(C).''.
SEC. 3. WHOLE FARM REVENUE PROTECTION.
Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c))
is amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(D) increase participation by producers--
``(i) marketing direct-to-consumers;
``(ii) marketing through intermediated
sales in local and regional markets;
``(iii) using farm identity-preserved
marketing; or
``(iv) undertaking producer education on
how to use direct market prices.'';
(2) in paragraph (7)--
(A) in subparagraph (A), by striking ``, with a
liability limitation of $1,500,000,'';
(B) in subparagraph (B), by inserting ``or in
combination with'' after ``in lieu of'';
(C) in subparagraph (C)--
(i) in the matter preceding clause (i), by
striking ``may'' and inserting ``shall'';
(ii) in clause (i), by striking ``or'' at
the end;
(iii) by redesignating clause (ii) as
clause (iii); and
(iv) by inserting after clause (i) the
following:
``(ii) utilize a resource-conserving crop
rotation (as defined in section 1240L(d)(1) of
the Food Security Act of 1985 (16 U.S.C.
3839aa-24(d)(1))); or'';
(D) in subparagraph (D), by striking ``may'' and
inserting ``shall'';
(E) in subparagraph (E)--
(i) in clause (i), in the matter preceding
subclause (I), by striking ``18 months after
the date of enactment of the Agriculture
Improvement Act of 2018'' and inserting ``1
year after the date of the enactment of the
Save Our Small Farms Act of 2025'';
(ii) in clause (ii), in the matter
preceding subclause (I), by striking
``subclause'' and inserting ``clause''; and
(iii) by adding at the end the following:
``(iii) Additional review.--Not later than
1 year after the date of the enactment of the
Save Our Small Farms Act of 2025, and annually
thereafter, the Corporation shall--
``(I) review any limitations on
insurable revenue (including the
overall limitation and limitations
specific to animals, animal products,
greenhouse and nursery, and
aquaculture) to ensure the limitations
are adequate to cover the financial
risks associated with the production of
high-value agricultural products; and
``(II) submit to the Committee on
Agriculture of the House of
Representatives and the Committee on
Agriculture, Nutrition, and Forestry of
the Senate a report that includes a
summary of the most recent review
conducted under subclause (I) and any
expected changes to the policy for the
following reinsurance year.
``(iv) Public report.--Not later than 18
months after the date of the enactment of the
Save Our Small Farms Act of 2025, the Board
shall make publicly available a report
describing the decisions made by the Board with
respect to each factor described in clause
(ii).'';
(F) by redesignating subparagraph (F) as
subparagraph (G); and
(G) by inserting after subparagraph (E) the
following:
``(F) Modifications to improve effectiveness for
specialty crops and diversified farms.--
``(i) In general.--Not later than 18 months
after the date of the enactment of the Save Our
Small Farms Act of 2025, the Corporation shall
implement the following modifications to the
plan developed under subparagraph (A):
``(I) Establish that appropriate
income reported on Internal Revenue
Service Tax Form Schedule F (or a
successor form), shall be sufficient
for the establishment of historical
adjusted revenue, subject to the
condition that approved insurance
providers may request additional
verifiable records in cases where there
is documented evidence, made clear to
the applicant, that farm tax records
are incomplete.
``(II) Presume that declines in
total market price are due to
unavoidable natural causes, unless the
Corporation demonstrates the extent to
which the decline in lower market price
is the direct result of an uninsured
manmade event.
``(III) Require that any adjustment
of the revenue guarantee by an approved
insurance provider, after the approved
insurance provider accepts a revised
farm operation report from the insured,
is contingent on approval from the Risk
Management Agency, and allow the
insured an opportunity to appeal any
denial by the Risk Management Agency of
that revenue guarantee adjustment to
the National Appeals Division.
``(IV) With respect to whole farm
revenue protection policies, raise the
limit on growth expansion for all
producers to the lower of--
``(aa) 100 percent of
historic revenue; and
``(bb) $500,000.
``(V) In the case of a rejection of
an application from a producer for a
whole farm insurance plan, the approved
insurance provider involved shall
notify the producer of such rejection,
and include in such notification a
written rationale with sufficient
detail for the producer to understand
any deficiencies in the application and
how to cure those deficiencies.
``(VI) Expand the maximum commodity
count eligible for the diversification-
based premium discount under
subparagraph (C) to apply to 10
commodities produced. The Secretary may
raise that maximum commodity count
eligible for the diversification-based
premium discount to include more than
10 commodities if determined necessary.
``(VII) Moderate the impact of
disaster years, as determined by the
Secretary, on historic revenue by--
``(aa) counting indemnities
as historic revenue for loss
years, including payments made
under the noninsured crop
disaster assistance program
established by section 196 of
the Federal Agriculture
Improvement and Reform Act of
1996 (7 U.S.C. 7333); or
``(bb) using an assigned
yield floor similar to the
limitation described in section
508(g)(6)(A)(i), as determined
by the Secretary.
``(VIII) Allow prices and yields
used to establish coverage in other
Federal crop insurance policies to be
used as prices and yields for whole
farm revenue protection policies.
``(IX) Establish a process for
records and acreage reports submitted
by producers for the noninsured crop
disaster assistance program established
by section 196 of the Federal
Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7333) to be accepted
as documentation for the requisite
actual production history for whole
farm revenue protection policies.
``(X) Increase agent incentives to
market whole farm revenue protection
by--
``(aa) providing annual
additional administrative and
operating subsidies, at a rate
determined by the Secretary, to
approved insurance providers
for any new whole farm revenue
policies written in a given
year; and
``(bb) with respect to a
whole farm revenue protection
policy, requiring approved
insurance providers to pay to
the agent who sold that policy
an amount equal to the total
administrative and operating
subsidy earned on that policy.
``(XI) Require approved insurance
providers to accept or reject
applications, by written decision,
within 75 days of receipt of the
application, with failure resulting in
a reduction by 15 percent of the amount
of the administrative and operating
subsidy that the approved insurance
provider receives from the Corporation
for that policy.
``(ii) Administrative improvements.--Not
later than 18 months after the date of the
enactment of the Save Our Small Farms Act of
2025, for purposes of improving the plan
developed under subparagraph (A), the
Corporation shall carry out the following
activities:
``(I) Create and maintain a web-
accessible tool for producers to locate
agents experienced in selling a whole
farm revenue protection policy.
``(II) Provide additional
educational and training opportunities
to approved insurance providers and
insurance agents, which may include
entering into agreements with 1 or more
entities--
``(aa) to provide technical
assistance to interested
producers;
``(bb) to conduct education
and outreach to agents and
insurance providers; and
``(cc) to develop best
practices for underwriting.
``(III) Conduct a pilot program to
create a pricing library for agents and
insurance providers, also accessible to
the public and entities that provide
technical assistance to farmers using
data from--
``(aa) the Agricultural
Marketing Service;
``(bb) the noninsured crop
disaster assistance program
established by section 196 of
the Federal Agriculture
Improvement and Reform Act of
1996 (7 U.S.C. 7333);
``(cc) approved policies of
the Board;
``(dd) land-grant colleges
or universities and other
institutions of higher
education;
``(ee) grower boards or
commissions; and
``(ff) other relevant
sources, as determined by the
Secretary.
``(iii) Availability of pricing library.--
The Risk Management Agency may, as determined
by the Secretary, offer the pricing library
described in item (aa) to agents and insurance
providers in connection with policies other
than policies developed under subparagraph (A).
``(iv) Public report.--Not later than 18
months after the date of the enactment of the
Save Our Small Farms Act of 2025, the Board
shall make publicly available a report
describing the decisions made by the Board with
respect to each modification described in
clauses (i) and (ii).''; and
(3) in paragraph (18), by adding at the end the following:
``(D) Continuation of plan.--The Administrator of
the Risk Management Agency shall continue to offer the
micro farm insurance plan offered pursuant to
subparagraph (A)(ii) in all States and counties of the
United States.
``(E) Modifications to improve effectiveness for
micro farms.--Not later than 180 days after the date of
the enactment of the Save Our Small Farms Act of 2025,
the Corporation shall implement the following
modifications to the micro farm insurance plan offered
pursuant to subparagraph (A)(ii):
``(i) Allow vertically integrated
operations to access coverage under a micro
farm policy.
``(ii) Allow producers with a micro farm
policy to also purchase crop-specific Federal
crop insurance policies for crops insured under
the micro farm policy.
``(iii) Expand the maximum approved revenue
to establish eligibility for a micro farm plan
of insurance to $1,000,000 or more, as
determined by the Secretary.''.
SEC. 4. SINGLE INDEX INSURANCE POLICY.
(a) In General.--Section 522(c) of the Federal Crop Insurance Act
(7 U.S.C. 1522(c)), as amended by section 3, is further amended by
adding at the end the following:
``(20) Single index insurance policy.--
``(A) Definitions.--In this paragraph:
``(i) Covered crop or commodity.--The term
`covered crop or commodity' means any crop or
commodity (including a specialty crop) on a
farm except timber, forest products, animals
for sport or show, and pets.
``(ii) Covered policy.--The term `covered
policy' means the single index insurance policy
described in subparagraph (B)(i).
``(iii) Covered weather condition.--
``(I) In general.--The term
`covered weather condition' means any
of the following weather conditions
that are found to be closely correlated
with agricultural income losses:
``(aa) High winds.
``(bb) Excessive moisture
and flooding.
``(cc) Extreme heat.
``(dd) Abnormal freeze
conditions.
``(ee) Wildfire.
``(ff) Hail.
``(gg) Drought.
``(hh) Any other severe
weather or growing conditions
applicable to small-scale
farmers, as determined by the
Secretary.
``(II) Data.--The existence of a
weather condition described in
subclause (I) shall be determined by
indices that prioritize using data from
the National Oceanic and Atmospheric
Administration, as available, but may
use other federally or State certified
weather data sources, public and
private satellite data, and weather and
climate data and models, if necessary,
as determined by the Secretary.
``(B) Policy.--
``(i) In general.--The Corporation shall
carry out research and development, or offer to
enter into 1 or more contracts with 1 or more
qualified persons to carry out research and
development, to develop a single index policy
to insure against agricultural income losses
due to 1 or more covered weather conditions.
``(ii) Coverage.--Research and development
on the covered policy under clause (i) shall
require that coverage is available in all 50
States (including Indian Tribes), the District
of Columbia, American Samoa, Guam, the
Commonwealth of the Northern Mariana Islands,
the Commonwealth of Puerto Rico, and the Virgin
Islands of the United States.
``(iii) Option to buy-up or buy-down.--
``(I) In general.--Research and
development on the covered policy under
clause (i) shall consider permitting a
holder of the covered policy to elect
to buy-up to 150 percent, subject to
subclause (II), or buy-down to 5
percent, of the median county-level
adjusted gross income for farms, in 5-
percent increments, to reflect the
income of the individual farm business
of the holder insured under the covered
policy.
``(II) Limitation.--A holder of a
covered policy may buy-up under
subclause (I) only if the farms of the
holder insured under the covered policy
have at least 3 covered crops or
commodities.
``(iv) Priority features of policy.--In
carrying out research and development on the
covered policy under clause (i), the following
features may be given priority:
``(I) Agricultural income losses
under the covered policy include--
``(aa) losses for all
covered crops or commodities;
and
``(bb) losses to the value
of packing, packaging, or any
other similar on-farm activity
that the Corporation determines
necessary to remove a covered
crop or commodity from the
field.
``(II) Payments are made under the
covered policy not later than 30 days
after the occurrence of a covered
weather condition in the county in
which the applicable farm of the farmer
is located or an adjacent county.
``(III) Provision of seasonal
coverage periods.
``(IV) Provision of special
consideration to concerns facing
individual farm businesses--
``(aa) that have less than
$350,000 in adjusted gross
income; and
``(bb) with respect to
which a farmer is an
underserved producer (as
defined in section
508(a)(7)(A)).
``(V) Paperwork requirements are
reduced for farmers seeking to obtain a
covered policy.
``(v) Consultation.--In carrying out
research and development on the covered policy
under clause (i), the Corporation--
``(I) shall hold stakeholder
meetings to solicit producer and agent
feedback; and
``(II) may consult with licensed
actuaries with experience developing
index policies insuring agricultural
production.
``(C) Report.--Not later than 1 year after the date
of the enactment of this paragraph, the Corporation
shall make publicly available a report that describes--
``(i) the results of the research and
development carried out under this paragraph;
and
``(ii) recommendations to Congress with
respect to those results, including--
``(I) any challenges to developing
the covered policy; and
``(II) options to address those
challenges.''.
(b) Technical Amendment.--Section 531(a)(18) of the Federal Crop
Insurance Act (7 U.S.C. 1531(a)(18)) is amended by striking ``section
2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 2279(e))'' and inserting ``section 2501(a) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a)).''.
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