Temperature Event Mitigation Policy Act; TEMP Act
Summary
The Temperature Event Mitigation Policy Act (TEMP Act) aims to amend the Federal Crop Insurance Act. It directs the Federal Crop Insurance Corporation (FCIC) to conduct research and development on frost or cold weather insurance. This insurance would protect crops against losses due to frost or cold weather events on a nationally available basis.
Expected Effects
The TEMP Act would lead to the development of index-based insurance policies for crops vulnerable to frost and cold weather. This would provide financial protection to farmers. The FCIC is required to submit a report to Congress detailing the research results and recommendations within one year of the Act's enactment.
Potential Benefits
- Provides financial security to farmers against crop losses due to frost and cold weather.
- Encourages research and development in risk management tools for low-frequency, high-impact weather events.
- Potentially stabilizes agricultural markets by reducing the financial impact of unexpected weather events.
- Could lead to more resilient agricultural practices and crop diversification.
- Offers protection for a wide range of crops, including specialty crops like tomatoes, peppers, and berries.
Potential Disadvantages
- The cost of research and development could be substantial, potentially increasing the financial burden on the FCIC.
- Index-based insurance may not perfectly reflect actual losses experienced by individual farmers.
- There may be challenges in accurately assessing and pricing the risk associated with frost and cold weather events.
- The development and implementation of the insurance policy could be complex and time-consuming.
- Potential for moral hazard if insurance coverage reduces incentives for farmers to implement frost protection measures.
Constitutional Alignment
The TEMP Act aligns with the General Welfare Clause of the US Constitution (Preamble), which allows Congress to enact laws that promote the well-being of the nation. Article I, Section 8, Clause 3 (Commerce Clause) grants Congress the power to regulate commerce, including agricultural activities and insurance related to those activities. The act falls within the scope of congressional authority to support and regulate agriculture.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).