Crop Insurance for Future Farmers Act
Crop Insurance for Future Farmers Act
Plain Language Summary
# Crop Insurance for Future Farmers Act Summary **What the Bill Does** The Crop Insurance for Future Farmers Act would make crop insurance more affordable for new and veteran farmers by increasing government subsidies for their insurance premiums. Currently, the federal government covers a portion of what farmers pay for crop insurance to protect against losses from weather, disease, or other disasters. This bill would boost that subsidy by 5 percentage points during the first two years a new farmer participates in the program, with gradually decreasing subsidies over time.
Additionally, it extends the period that farmers qualify for these enhanced benefits from 5 years to 10 years. **Who It Affects** The bill specifically targets beginning farmers (those relatively new to farming) and veteran farmers or ranchers. These groups would see lower out-of-pocket costs for crop insurance, making it easier to afford financial protection for their operations. The changes would also indirectly affect the federal budget, as increased subsidies mean higher government spending on the program. **Current Status** The bill (HR 2117) was introduced in the 119th Congress by Representative Randy Feenstra (R-Iowa) and is currently in committee, meaning it has not yet been debated or voted on by the full House.
CRS Official Summary
Crop Insurance for Future Farmers ActThis bill amends the federal crop insurance program (FCIP) to increase the premium assistance rate for beginning and veteran farmers or ranchers. (FCIP offers subsidized crop insurance policies that producers can purchase to cover a wide variety of crops and livestock.)Specifically, the bill amends the amount of percentage points that are added to the premium assistance rate for beginning farmers or ranchers and veteran farmers or ranchers for an applicable insurance policy or plan (currently 10 percentage points) to provide15 percentage points in each of the 1st and 2nd reinsurance years,13 percentage points in the 3rd year,11 percentage points in the 4th year, and10 percentage points in each of the 5th through the 10th reinsurance years.Under the bill, farmers and ranchers, and veteran farmers and ranchers, are eligible to qualify for the program for 10 years, an increase from 5 years under current law. Specifically, to be considered a beginning farmer or rancher, a person must not have actively operated and managed a farm or ranch for more than 10 crop years. To be considered a veteran farmer or rancher, a veteran must have (1) not operated a farm or ranch for more than 10 crop years, or (2) first obtained veteran status in the past 10 years.
Latest Action
Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.