The WEATHER Act of 2025 would authorize the Federal Crop Insurance Corporation (FCIC) to conduct research and development on a new “single index” weather-based insurance policy intended to protect farm income against a defined set of extreme weather conditions. The policy would be designed to cover crops nationwide (including specialty crops) and would be based on weather indicators (primarily data from NOAA and other certified sources) that are closely correlated with agricultural income losses. The bill sets up a process for developing the policy, including stakeholder input and consultation with actuaries, and would require a public report to Congress within one year after enactment. Key features include a nationwide rollout (across all states and U.S. territories), an option for buyers to adjust coverage up or down relative to county-level median income (buy-up to 150% or buy-down to 5%, in 5% steps, with eligibility tied to having at least three covered crops), and several prioritized protections (speedy payments, seasonal coverage, reduced paperwork, and special considerations for smaller, underserved farms). The policy would also expand the types of losses considered (including on-farm value losses like packing) and require consultation with stakeholders during development.
Key Points
- 1Creation and purpose of a single index insurance policy
- 2- The FCIC is authorized to research, develop, or contract for development of a single index policy that insures agricultural income losses tied to one or more listed weather conditions.
- 3- Covered crops include most crops (including specialty crops) on farms, with certain exclusions (timber/forest products, animals for sport/show, pets).
- 4Covered weather conditions and data sources
- 5- Weather conditions include high winds, excessive moisture/flooding, extreme heat, abnormal freezes, wildfire, hail, drought, and other severe conditions for small-scale farmers as determined by the Secretary.
- 6- Data for determining the weather events should prioritize NOAA data, but may use other certified weather data sources, satellite data, and climate models if necessary.
- 7Coverage scope and geographic availability
- 8- The policy must be developed so coverage is available in all 50 states (including Indian Tribes), the District of Columbia, U.S. territories (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, U.S. Virgin Islands).
- 9Buy-up and buy-down provisions
- 10- A policyholder may elect to buy up coverage to 150% or buy down to 5% of the county’s median adjusted gross income (AGI), in 5% increments.
- 11- Eligibility for these adjustments requires that the insured farms have at least three covered crops or commodities.
- 12Priority features and protections
- 13- Include losses to all covered crops/commodities and certain on-farm activities necessary to remove a crop from the field (e.g., packing).
- 14- Payments to policyholders would be made no later than 30 days after a covered weather event occurs in the relevant county or an adjacent county.
- 15- Provisions for seasonal coverage periods, and special consideration for small firms (AGI under $350,000) and underserved producers.
- 16- Reduced paperwork for obtaining the policy.
- 17Stakeholder engagement and reporting
- 18- FCIC must hold stakeholder meetings and may consult with experienced actuaries in index policy development.
- 19- Within 1 year of enactment, FCIC must publicly release a report describing the research results and recommendations to Congress, including challenges and options for addressing them.
- 20Technical correction
- 21- A minor statutory cross-reference correction is included to align a section with the 1990 farm act.