S.1693 - Federal Agriculture Risk Management Enhancement and Resilience Act of 2025; FARMER Act of 2025 (119th Congress)
Summary
S.1693, the FARMER Act of 2025, aims to amend the Federal Crop Insurance Act to enhance premium support for specific insurance plans. This includes individual farm-based revenue or yield protection plans, and the Supplemental Coverage Option (SCO). The bill also mandates a study on modifying the SCO to provide coverage for larger counties at varying levels.
Expected Effects
The bill is likely to increase the affordability of crop insurance for farmers by increasing premium support. It may also lead to adjustments in coverage options, particularly for larger counties. The study on SCO could lead to further modifications in the future.
Potential Benefits
- Increased premium support makes crop insurance more accessible to farmers.
- Adjustments to SCO coverage levels could provide better protection against losses.
- The study on SCO may lead to more tailored insurance products for diverse agricultural regions.
- Supports the agricultural sector, contributing to food security.
- May encourage more farmers to adopt risk management strategies.
Potential Disadvantages
- Increased premium support could lead to higher costs for the federal government.
- Modifications to SCO might not be beneficial for all farmers, depending on their specific circumstances.
- The study adds administrative burden and costs.
- Potential for unintended consequences from altering established insurance programs.
- Benefits may disproportionately favor larger farms or specific regions.
Constitutional Alignment
The bill aligns with the General Welfare Clause (Preamble) by aiming to support the agricultural sector and ensure food security. Congress has the power to regulate commerce, including agricultural activities, under Article I, Section 8, Clause 3 (Commerce Clause). The bill's provisions for crop insurance and premium support fall under this regulatory authority.
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).