Sec. 11203. Improvements to whole farm and micro farm insurance plans
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/bill/118/s/5335/is/section-11203A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 522(c) of the Federal Crop Insurance Act ( 7 U.S.C. 1522(c) ) is amended— in paragraph (1)— in subparagraph (B), by striking and at the end; in subparagraph (C), by striking the period at the end and inserting ; and ; and by adding at the end the following: increase participation by producers marketing products direct-to-consumer in local and regional markets or using farm identity-preserved marketing, including by undertaking producer education on how to use direct market prices. ; in paragraph
(7)(as amended by section 11101(a)(1)(B))— in subparagraph (A), by striking plan, with a liability limitation of $1,500,000, and inserting plan ; in subparagraph (C), in the matter preceding clause (i), by striking may and inserting shall ; in subparagraph (D), by striking may and inserting shall ; in subparagraph (E)— 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 enactment of the ; Rural Prosperity and Food Security Act of 2024 in clause (ii), in the matter preceding subclause (I), by striking subclause and inserting clause ; and by adding at the end the following: Not later than 1 year after the date of enactment of the Rural Prosperity and Food Security Act of 2024 , and annually thereafter, the Corporation shall— 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 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. Not later than 18 months after the date of enactment of the Rural Prosperity and Food Security Act of 2024 , the Board shall make publicly available a report describing the decisions made by the Board with respect to each factor described in clause (ii). ; and by adding at the end the following: Not later than 180 days after the date of enactment of the Rural Prosperity and Food Security Act of 2024 , the Corporation shall implement the following modifications to the plans developed under subparagraph
(A)and paragraph (18): Establish that appropriate income reported on Internal Revenue Service Tax Form Schedule F, or successor forms, shall be sufficient for the establishment of historical adjusted revenue, subject to the condition that 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. Require that the adjustment of the revenue guarantee by an approved insurance provider, after the approved insurance provider accepts the revised farm operation report, is contingent on approval from the Risk Management Agency, and allow the insured an opportunity to appeal decisions to the National Appeals Division. Presume that declines in local market price are due to unavoidable natural causes, unless the Corporation can prove the extent to which the decline in local market price is the direct result of an uninsured manmade event. With respect to whole farm revenue protection policies, raise the limit on growth expansion for all producers to the lower of— 100 percent of historic revenue; and $500,000. Require approved insurance providers to accept or reject applications, by written decision, within 75 days of receipt of the application, with failure to do so 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. A rejection of an application shall include a written rationale with sufficient detail for the producer to understand any deficiencies in the application and how to cure those deficiencies. Require the Risk Management Agency and approved insurance providers to treat different cultivation cycles of a single crop, such as peppers, as separate crops to recognize the difference in perils at different periods of the year for purposes of calculating the diversification premium discount. Provide additional educational and training opportunities to approved insurance providers and insurance agents, which may include entering into agreements with 1 or more entities— to provide technical assistance to producers interested in a whole farm revenue protection policy similar to the plan described in this paragraph; to conduct education and outreach to agents and insurance providers for a whole farm revenue protection policy similar to the plan described in this paragraph; and to develop best practices for underwriting. Conduct a pilot program to create a pricing library for agents and insurance providers using data from— the Agricultural Marketing Service; 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 ); approved policies of the Board; land-grant colleges or universities and other institutions of higher education; grower boards or commissions; or other relevant sources, as determined by the Secretary. The Risk Management Agency may, as determined by the Secretary, offer the pricing library described in subclause
(I)to agents and insurance providers in connection with policies other than policies developed under subparagraph
(A)or paragraph (18). 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. Establish a process for records and acreage reports submitted by producers for the noninsured crop assistance program under 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. Create a web-accessible tool for producers to locate agents experienced in selling a whole farm revenue protection policy. The Corporation shall moderate the impact of disaster years, as determined by the Secretary, on historic revenue by considering— using an average of the historic and projected revenue; counting indemnities as historic revenue for loss years; counting payments under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 ( 7 U.S.C. 7333 ) as historic revenue for loss years; and using an assigned yield floor similar to the limitation described in section 508(g)(6)(A)(i), as determined by the Secretary. 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, regarding the use of alternative records for establishing a revenue guarantee of a producer, including— any farm loan records, including business plans or other materials, to establish expected revenue and cash flow used for a Farm Service Agency direct or guaranteed loan; and any business plans developed in consultation with an acceptable source, as determined by the Secretary, such as an extension service, a farm business management service, a Farm Credit System institution, a community development financial institution, or a private lender. Not later than 1 year after the date of enactment of the Rural Prosperity and Food Security Act of 2024 , the Corporation shall 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 describes— the results of the research and development carried out under clause (i); any changes being implemented by the Corporation, either permanently or on a pilot basis; and any recommendations to Congress with respect to those results. ; and in paragraph (18), by adding at the end the following: 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. Not later than 1 year after the date of enactment of the Rural Prosperity and Food Security Act of 2024 , the Administrator of the Risk Management Agency shall— conduct stakeholder meetings to solicit producer and agent feedback on the performance of, challenges in purchasing and servicing, and opportunities for improving, the micro farm insurance plan offered pursuant to subparagraph (A)(ii); and review procedure and paperwork requirements for agents and producers and make modifications, as appropriate, to decrease burdens and increase flexibility and effectiveness of that plan. Not later than 18 months after the date of enactment of the Rural Prosperity and Food Security Act of 2024 , the Corporation shall 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 describes— any feedback received under clause (i)(I); the results of the review carried out under clause (i)(II); and any recommendations with respect to that feedback or those results. Not later than 180 days after the date of enactment of the Rural Prosperity and Food Security Act of 2024 , the Corporation shall implement the following modifications to the micro farm insurance plan offered pursuant to subparagraph (A)(ii): Allow vertically integrated operations to access coverage under a micro farm policy. Allow producers with a micro farm policy to also purchase crop-specific Federal crop insurance policies for crops insured under the micro farm policy. Not later than 1 year after the date of enactment of the Rural Prosperity and Food Security Act of 2024 , under the micro farm insurance plan offered pursuant to subparagraph (A)(ii), the Corporation shall implement an option for producers with not more than $1,000,000 in gross revenue that requires significantly less paperwork and recordkeeping. .