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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8611 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 8611
To amend the Federal Agriculture Improvement and Reform Act of 1996 and
the Federal Crop Insurance Act with respect to transitioning producers
from the noninsurance crop assistance program to whole farm revenue
insurance.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 4, 2024
Mrs. Hayes (for herself, Mr. Larson of Connecticut, Mr. Courtney, Ms.
DeLauro, Mr. Himes, Mr. McGovern, Mr. Neal, Ms. Jackson Lee, Ms. Adams,
and Ms. Pingree) 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 and
the Federal Crop Insurance Act with respect to transitioning producers
from the noninsurance crop assistance program to whole farm revenue
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 2024''.
SEC. 2. ADMINISTRATION AND OPERATION OF NONINSURED CROP ASSISTANCE
PROGRAM.
Section 196 of the 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''; and
(ii) by striking ``and'' at the end;
(C) in clause (ii)--
(i) by striking ``ensures''; 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 Farm Service
Agency with a local average market price; and
``(iv) the voluntary graduation of program
participants to the whole farm revenue
insurance plan established under the section
522(c)(7) of the Federal Crop Insurance Act (7
U.S.C. 1522(c)(7)).'';
(2) in subsection (b), by amending paragraph (4) to read as
follows:
``(4) Streamlined application process.--
``(A) In general.--The Secretary shall establish a
streamlined process for the submission of records and
acreage reports under paragraphs (2) and (3) 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, including--
``(I) reduced acreage report
requirements; and
``(II) allowing 2 reports so as to
accommodate a second, later acreage
reporting date.
``(B) On-ramp to whole farm revenue insurance
plan.--
``(i) In general.--In the case of a
producer of diverse production systems
described in subparagraph (A)(i) that may be
eligible for the whole farm revenue insurance
plan established under section 522(c)(7) of the
Federal Crop Insurance Act (7 U.S.C.
1522(c)(7)), the Secretary, acting through the
Director of the Farm Service Agency, shall
establish a streamlined revenue-based option,
designed to assist such producer to, on a
voluntary basis, transition from the noninsured
crop disaster assistance under this section to
the whole farm revenue insurance plan.
``(ii) Requirements.--The streamlined
revenue-based option established under clause
(i) shall--
``(I) offer a premium discount of
25 percent for the first crop year that
a producer--
``(aa) certifies that the
producer will transition from
noninsured crop disaster
assistance under this section
to the whole farm revenue
insurance plan established
under section 522(c)(7) of the
Federal Crop Insurance Act (7
U.S.C. 1522(c)(7)) not later
than 3 years after the date of
the certification; and
``(bb) provides revenue
history with respect to such
crop year;
``(II) offer a premium discount of
50 percent in the crop year succeeding
the crop year described in subclause
(I) if the producer--
``(aa) certifies that the
producer will transition from
noninsured crop disaster
assistance under this section
to the whole farm revenue
insurance plan established
under section 522(c)(7) of the
Federal Crop Insurance Act (7
U.S.C. 1522(c)(7)) not later
than 2 years after the date of
the certification; and
``(bb) provides revenue
history with respect to such
crop year; and
``(III) offer a premium discount of
50 percent in the crop year succeeding
the crop year described in subclause
(II) if the producer--
``(aa) purchases insurance
under the whole farm revenue
insurance plan established
under section 522(c)(7) of the
Federal Crop Insurance Act (7
U.S.C. 1522(c)(7)) not later
than 1 year after the date of
the certification; and
``(bb) provides revenue
history with respect to such
crop year.
``(iii) Tax form schedule f.--The Secretary
shall accept the Internal Revenue Service Tax
Form Schedule F 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).
``(C) Rulemaking.--Not later than 90 days after the
date of the enactment of the Save our Small Farms Act
of 2024, the Secretary shall issue regulations to
ensure that premium discounts under this paragraph are
only available to producers that comply with this
paragraph.'';
(3) in subsection (c), by adding at the end the following:
``(5) Notice of loss.--Producers of hand-harvested or
rapidly-deteriorating crops may submit losses of such crops to
the Secretary after the 120-hour period following such losses
and be eligible for assistance under this section.
``(6) Appraisal of loss.--
``(A) In general.--The Secretary shall permit, when
an appraisal of crop acreage is requested (by a
producer or determined necessary by a State
agricultural official or Farm Service Agency State
executive director) in a year that a notice of loss is
filed, particularly in cases where a loss adjuster is
not available within 72 hours of the notice, the
following alternatives to an in-person appraisal by a
loss adjuster:
``(i) Remote appraisal, including time-
stamped photographs, drone footage, or other
technology applications.
``(ii) Appraisal by field office staff of
the Farm Service Agency with requisite
training, in conjunction with remote appraisal.
``(B) Trainings.--For purposes of subparagraph
(A)(ii), the Secretary shall require field office staff
to attend a noninsured crop disaster assistance
appraisal training.'';
(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 and
inserting ``; and''; and
(C) by adding at the end the following:
``(C) in the case of a limited resource, beginning,
veteran, or socially disadvantaged farmers or rancher,
or a farmer or rancher participating in the revenue-
based option established by subsection (b)(4)(B),
$600,000.'';
(6) in subsection (k)(2)--
(A) by striking ``or a veteran'' and inserting ``a
veteran''; and
(B) by inserting ``, or a farmer or rancher
participating in the revenue-based option established
by subsection (b)(4)(B)'' before the period at the end;
(7) in subsection (l), by amending paragraph (3) to read as
follows:
``(3) Premium discount.--The coverage made available under
this subsection shall be available to limited resource,
beginning, and socially disadvantaged farmers, as determined by
the Secretary, and veteran farmers or ranchers, and a farmer or
rancher participating in the revenue-based option established
by subsection (b)(4)(B), 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 work with outreach and
technical assistance providers, extension offices, and State
departments of agriculture to advertise noninsured crop disaster
assistance, particularly to limited resource, beginning, veteran, and
socially disadvantaged farmers and ranchers, and farmers and ranchers
of diverse production systems eligible to participate in the revenue-
based option established by subsection (b)(4)(B).''.
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; or
``(iii) using farm identity-preserved
marketing.''; and
(2) in paragraph (7)--
(A) in subparagraph (B), by inserting ``or in
combination with'' after ``in lieu of'';
(B) 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; or'';
(C) in subparagraph (D), by striking ``may'' and
inserting ``shall'';
(D) by redesignating subparagraph (F) as
subparagraph (H); and
(E) by inserting after subparagraph (E) the
following:
``(F) Modifications to improve effectiveness for
specialty crops and diversified farms.--Not later than
180 days after the date of enactment of the Save Our
Small Farms Act of 2024, the Corporation shall
implement the following modifications to the plan
developed under subparagraph (A):
``(i) Establish that Internal Revenue
Service Tax Form Schedule F 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 that the farm tax records
of the applicant are incomplete.
``(ii) Prohibit an approved insurance
provider from adjusting the revenue guarantee
after the approved insurance provider accepts
the revised farm operation report, unless the
approved insurance provider, in coordination
with the Risk Management Agency, identifies
indicators of potential fraud.
``(iii) Expand the option for significantly
less paperwork and recordkeeping to producers
with not less than $1,000,000 in gross revenue.
``(iv) Raise the limit on growth expansion
for all producers to the lower of--
``(I) 100 percent of historic
revenue; and
``(II) $500,000.
``(v) Expand the diversification premium
discount to apply to not fewer than 10
commodities.
``(vi) Moderate the impact of disaster
years by--
``(I) counting 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
``(II) using an assigned yield
floor similar to the limitation
described in section 508(g)(6)(A)(i),
as determined by the Secretary.
``(vii) Increase agent incentives to market
whole farm revenue protection by--
``(I) providing annual additional
administration 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
``(II) 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
administration and operating subsidy
earned on that policy.
``(viii) Provide for additional educational
and training opportunities to approved
insurance providers and insurance agents.
``(G) Transition from noninsured crop disaster
assistance.--
``(i) Previous nap-purchases.--In the case
of a producer that participated in noninsured
crop disaster assistance under section 196 of
the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7333) in each of the 3
crop years preceding the date of the enactment
of this subparagraph that enrolls in a whole
farm insurance plan under this paragraph for
the first crop year beginning after the date of
the enactment of this subparagraph, the
Corporation shall provide a premium discount of
35 percent with respect to such first crop
year.
``(ii) On-ramp participants.--In the case
of a producer that meets the requirements of
subsection (b)(4)(B) of section 196 of the
Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7333) and enrolls in a whole
farm insurance plan under this paragraph, the
Corporation shall provide a premium discount of
30 percent with respect to the first year in
which such producer is so enrolled.''.
SEC. 4. SINGLE INDEX INSURANCE POLICY.
(a) In General.--Section 522(c) of the Federal Crop Insurance Act
(7 U.S.C. 1522(c)) is 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 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)).''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Agriculture.
Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.
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