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S 1693119th CongressIn Committee

FARMER Act of 2025

Introduced: May 8, 2025
Agriculture & Food
View on Congress.gov
Standard Summary
Comprehensive overview in 1-2 paragraphs

The FARMER Act of 2025 (Federal Agriculture Risk Management Enhancement and Resilience Act) seeks to expand and modify premium subsidies and coverage structures within the federal crop insurance program. It adds a new premium subsidy pathway for farm-based revenue protection or yield protection plans when producers choose enterprise units or whole-farm units, increasing the government’s share to 77% for one coverage level and 68% for another. It also makes changes to the Supplemental Coverage Option (SCO) by adjusting coverage level parameters and raising the SCO premium subsidy from 65% to 80%. Additionally, the bill directs a study to explore expanding SCO coverage to counties larger than 1,400 square miles in a form that is smaller than county-wide but larger than individual coverage, with a report due within a year. The overall aim is to bolster risk management and resilience for farm operations, potentially expanding eligibility and use of risk protection while increasing federal support.

Key Points

  • 1Premium support for enterprise-unit or whole-farm-unit plans: For farm-based revenue protection or yield protection, when using enterprise units or whole-farm units, the government will subsidize part of the premium at 77% for the higher coverage level described in paragraph (2)(F) and 68% for the lower coverage level described in paragraph (2)(G). This supersedes the existing subparagraphs (F) and (G) in the relevant statutory provision.
  • 2Supplemental Coverage Option (SCO) – coverage levels: The SCO coverage level parameters are adjusted (clause (ii) from 14 to 10, and clause (iii)(I) from 86 to 90), altering how SCO interacts with the base policy’s coverage levels.
  • 3SCO – premium subsidy increase: The premium subsidy for SCO is raised from 65% to 80%.
  • 4Study on SCO modification: The bill requires the USDA’s Risk Management Agency to study the feasibility of modifying SCO to cover counties larger than 1,400 square miles, with coverage that is smaller than county-wide but larger than individual coverage, and to report findings within one year.
  • 5Short title: The act is titled the Federal Agriculture Risk Management Enhancement and Resilience Act of 2025, or the FARMER Act of 2025.

Impact Areas

Primary group/area affected: Farmers and ranchers who opt for farm-based revenue protection or yield protection with enterprise-unit or whole-farm-unit structures, and producers who participate in the Supplemental Coverage Option (SCO). The changes increase government premium subsidies for these policies, potentially lowering out-of-pocket costs for participants.Secondary group/area affected: Crop insurance providers and the USDA's Risk Management Agency, which administers premium subsidies and policy structures. State and local farm economies may see shifts in participation and coverage choices.Additional impacts: Higher federal subsidy costs could affect the crop insurance program’s budget; expanding or reconfiguring SCO to larger county-like areas may influence risk pools, subsidized coverage distribution, and premium pricing. The required study could inform future policy decisions about unit structures and county-scale coverage beyond current boundaries.
Generated by gpt-5-nano on Oct 7, 2025