[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8611 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 8611

To amend the Federal Agriculture Improvement and Reform Act of 1996 and 
the Federal Crop Insurance Act with respect to transitioning producers 
  from the noninsurance crop assistance program to whole farm revenue 
                               insurance.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 2024

 Mrs. Hayes (for herself, Mr. Larson of Connecticut, Mr. Courtney, Ms. 
DeLauro, Mr. Himes, Mr. McGovern, Mr. Neal, Ms. Jackson Lee, Ms. Adams, 
 and Ms. Pingree) introduced the following bill; which was referred to 
                      the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Agriculture Improvement and Reform Act of 1996 and 
the Federal Crop Insurance Act with respect to transitioning producers 
  from the noninsurance crop assistance program to whole farm revenue 
                               insurance.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Save Our Small Farms Act of 2024''.

SEC. 2. ADMINISTRATION AND OPERATION OF NONINSURED CROP ASSISTANCE 
              PROGRAM.

    Section 196 of the of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7333) is amended--
            (1) in subsection (a)(1)(C)--
                    (A) in the matter preceding clause (i), by 
                inserting ``best facilitates'' after ``assistance 
                program that'';
                    (B) in clause (i)--
                            (i) by striking ``best facilitates''; and
                            (ii) by striking ``and'' at the end;
                    (C) in clause (ii)--
                            (i) by striking ``ensures''; and
                            (ii) by striking the period at the end and 
                        inserting a semicolon; and
                    (D) by adding at the end the following:
                            ``(iii) the expansion of crops listed on 
                        the National Crop Table of the Farm Service 
                        Agency with a local average market price; and
                            ``(iv) the voluntary graduation of program 
                        participants to the whole farm revenue 
                        insurance plan established under the section 
                        522(c)(7) of the Federal Crop Insurance Act (7 
                        U.S.C. 1522(c)(7)).'';
            (2) in subsection (b), by amending paragraph (4) to read as 
        follows:
            ``(4) Streamlined application process.--
                    ``(A) In general.--The Secretary shall establish a 
                streamlined process for the submission of records and 
                acreage reports under paragraphs (2) and (3) for--
                            ``(i) diverse production systems, such as 
                        those typical of urban production systems;
                            ``(ii) other small-scale production 
                        systems; and
                            ``(iii) direct-to-consumer production 
                        systems, including--
                                    ``(I) reduced acreage report 
                                requirements; and
                                    ``(II) allowing 2 reports so as to 
                                accommodate a second, later acreage 
                                reporting date.
                    ``(B) On-ramp to whole farm revenue insurance 
                plan.--
                            ``(i) In general.--In the case of a 
                        producer of diverse production systems 
                        described in subparagraph (A)(i) that may be 
                        eligible for the whole farm revenue insurance 
                        plan established under section 522(c)(7) of the 
                        Federal Crop Insurance Act (7 U.S.C. 
                        1522(c)(7)), the Secretary, acting through the 
                        Director of the Farm Service Agency, shall 
                        establish a streamlined revenue-based option, 
                        designed to assist such producer to, on a 
                        voluntary basis, transition from the noninsured 
                        crop disaster assistance under this section to 
                        the whole farm revenue insurance plan.
                            ``(ii) Requirements.--The streamlined 
                        revenue-based option established under clause 
                        (i) shall--
                                    ``(I) offer a premium discount of 
                                25 percent for the first crop year that 
                                a producer--
                                            ``(aa) certifies that the 
                                        producer will transition from 
                                        noninsured crop disaster 
                                        assistance under this section 
                                        to the whole farm revenue 
                                        insurance plan established 
                                        under section 522(c)(7) of the 
                                        Federal Crop Insurance Act (7 
                                        U.S.C. 1522(c)(7)) not later 
                                        than 3 years after the date of 
                                        the certification; and
                                            ``(bb) provides revenue 
                                        history with respect to such 
                                        crop year;
                                    ``(II) offer a premium discount of 
                                50 percent in the crop year succeeding 
                                the crop year described in subclause 
                                (I) if the producer--
                                            ``(aa) certifies that the 
                                        producer will transition from 
                                        noninsured crop disaster 
                                        assistance under this section 
                                        to the whole farm revenue 
                                        insurance plan established 
                                        under section 522(c)(7) of the 
                                        Federal Crop Insurance Act (7 
                                        U.S.C. 1522(c)(7)) not later 
                                        than 2 years after the date of 
                                        the certification; and
                                            ``(bb) provides revenue 
                                        history with respect to such 
                                        crop year; and
                                    ``(III) offer a premium discount of 
                                50 percent in the crop year succeeding 
                                the crop year described in subclause 
                                (II) if the producer--
                                            ``(aa) purchases insurance 
                                        under the whole farm revenue 
                                        insurance plan established 
                                        under section 522(c)(7) of the 
                                        Federal Crop Insurance Act (7 
                                        U.S.C. 1522(c)(7)) not later 
                                        than 1 year after the date of 
                                        the certification; and
                                            ``(bb) provides revenue 
                                        history with respect to such 
                                        crop year.
                            ``(iii) Tax form schedule f.--The Secretary 
                        shall accept the Internal Revenue Service Tax 
                        Form Schedule F with respect to a producer for 
                        purposes of establishing revenue history under 
                        clause (ii).
                            ``(iv) Revenue history sharing.--The 
                        Secretary shall submit to the Federal Crop 
                        Insurance Corporation the revenue history 
                        submitted to the Secretary pursuant to clause 
                        (ii).
                    ``(C) Rulemaking.--Not later than 90 days after the 
                date of the enactment of the Save our Small Farms Act 
                of 2024, the Secretary shall issue regulations to 
                ensure that premium discounts under this paragraph are 
                only available to producers that comply with this 
                paragraph.'';
            (3) in subsection (c), by adding at the end the following:
            ``(5) Notice of loss.--Producers of hand-harvested or 
        rapidly-deteriorating crops may submit losses of such crops to 
        the Secretary after the 120-hour period following such losses 
        and be eligible for assistance under this section.
            ``(6) Appraisal of loss.--
                    ``(A) In general.--The Secretary shall permit, when 
                an appraisal of crop acreage is requested (by a 
                producer or determined necessary by a State 
                agricultural official or Farm Service Agency State 
                executive director) in a year that a notice of loss is 
                filed, particularly in cases where a loss adjuster is 
                not available within 72 hours of the notice, the 
                following alternatives to an in-person appraisal by a 
                loss adjuster:
                            ``(i) Remote appraisal, including time-
                        stamped photographs, drone footage, or other 
                        technology applications.
                            ``(ii) Appraisal by field office staff of 
                        the Farm Service Agency with requisite 
                        training, in conjunction with remote appraisal.
                    ``(B) Trainings.--For purposes of subparagraph 
                (A)(ii), the Secretary shall require field office staff 
                to attend a noninsured crop disaster assistance 
                appraisal training.'';
            (4) in subsection (e)(3), by striking ``65 percent'' and 
        inserting ``100 percent'';
            (5) in subsection (i)(2)--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) in the case of a limited resource, beginning, 
                veteran, or socially disadvantaged farmers or rancher, 
                or a farmer or rancher participating in the revenue-
                based option established by subsection (b)(4)(B), 
                $600,000.'';
            (6) in subsection (k)(2)--
                    (A) by striking ``or a veteran'' and inserting ``a 
                veteran''; and
                    (B) by inserting ``, or a farmer or rancher 
                participating in the revenue-based option established 
                by subsection (b)(4)(B)'' before the period at the end;
            (7) in subsection (l), by amending paragraph (3) to read as 
        follows:
            ``(3) Premium discount.--The coverage made available under 
        this subsection shall be available to limited resource, 
        beginning, and socially disadvantaged farmers, as determined by 
        the Secretary, and veteran farmers or ranchers, and a farmer or 
        rancher participating in the revenue-based option established 
        by subsection (b)(4)(B), in exchange for a premium that is 25 
        percent of the premium determined under paragraph (2).''; and
            (8) by adding at the end the following:
    ``(m) Delivery.--The Secretary shall work with outreach and 
technical assistance providers, extension offices, and State 
departments of agriculture to advertise noninsured crop disaster 
assistance, particularly to limited resource, beginning, veteran, and 
socially disadvantaged farmers and ranchers, and farmers and ranchers 
of diverse production systems eligible to participate in the revenue-
based option established by subsection (b)(4)(B).''.

SEC. 3. WHOLE FARM REVENUE PROTECTION.

    Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) 
is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) increase participation by producers--
                            ``(i) marketing direct-to-consumers;
                            ``(ii) marketing through intermediated 
                        sales in local and regional markets; or
                            ``(iii) using farm identity-preserved 
                        marketing.''; and
            (2) in paragraph (7)--
                    (A) in subparagraph (B), by inserting ``or in 
                combination with'' after ``in lieu of'';
                    (B) in subparagraph (C)--
                            (i) in the matter preceding clause (i), by 
                        striking ``may'' and inserting ``shall'';
                            (ii) in clause (i), by striking ``or'' at 
                        the end;
                            (iii) by redesignating clause (ii) as 
                        clause (iii); and
                            (iv) by inserting after clause (i) the 
                        following:
                            ``(ii) utilize a resource-conserving crop 
                        rotation; or'';
                    (C) in subparagraph (D), by striking ``may'' and 
                inserting ``shall'';
                    (D) by redesignating subparagraph (F) as 
                subparagraph (H); and
                    (E) by inserting after subparagraph (E) the 
                following:
                    ``(F) Modifications to improve effectiveness for 
                specialty crops and diversified farms.--Not later than 
                180 days after the date of enactment of the Save Our 
                Small Farms Act of 2024, the Corporation shall 
                implement the following modifications to the plan 
                developed under subparagraph (A):
                            ``(i) Establish that Internal Revenue 
                        Service Tax Form Schedule F shall be sufficient 
                        for the establishment of historical adjusted 
                        revenue, subject to the condition that approved 
                        insurance providers may request additional 
                        verifiable records in cases where there is 
                        documented evidence that the farm tax records 
                        of the applicant are incomplete.
                            ``(ii) Prohibit an approved insurance 
                        provider from adjusting the revenue guarantee 
                        after the approved insurance provider accepts 
                        the revised farm operation report, unless the 
                        approved insurance provider, in coordination 
                        with the Risk Management Agency, identifies 
                        indicators of potential fraud.
                            ``(iii) Expand the option for significantly 
                        less paperwork and recordkeeping to producers 
                        with not less than $1,000,000 in gross revenue.
                            ``(iv) Raise the limit on growth expansion 
                        for all producers to the lower of--
                                    ``(I) 100 percent of historic 
                                revenue; and
                                    ``(II) $500,000.
                            ``(v) Expand the diversification premium 
                        discount to apply to not fewer than 10 
                        commodities.
                            ``(vi) Moderate the impact of disaster 
                        years by--
                                    ``(I) counting payments made under 
                                the noninsured crop disaster assistance 
                                program established by section 196 of 
                                the Federal Agriculture Improvement and 
                                Reform Act of 1996 (7 U.S.C. 7333); or
                                    ``(II) using an assigned yield 
                                floor similar to the limitation 
                                described in section 508(g)(6)(A)(i), 
                                as determined by the Secretary.
                            ``(vii) Increase agent incentives to market 
                        whole farm revenue protection by--
                                    ``(I) providing annual additional 
                                administration and operating subsidies, 
                                at a rate determined by the Secretary, 
                                to approved insurance providers for any 
                                new whole farm revenue policies written 
                                in a given year; and
                                    ``(II) with respect to a whole farm 
                                revenue protection policy, requiring 
                                approved insurance providers to pay to 
                                the agent who sold that policy an 
                                amount equal to the total 
                                administration and operating subsidy 
                                earned on that policy.
                            ``(viii) Provide for additional educational 
                        and training opportunities to approved 
                        insurance providers and insurance agents.
                    ``(G) Transition from noninsured crop disaster 
                assistance.--
                            ``(i) Previous nap-purchases.--In the case 
                        of a producer that participated in noninsured 
                        crop disaster assistance under section 196 of 
                        the Federal Agriculture Improvement and Reform 
                        Act of 1996 (7 U.S.C. 7333) in each of the 3 
                        crop years preceding the date of the enactment 
                        of this subparagraph that enrolls in a whole 
                        farm insurance plan under this paragraph for 
                        the first crop year beginning after the date of 
                        the enactment of this subparagraph, the 
                        Corporation shall provide a premium discount of 
                        35 percent with respect to such first crop 
                        year.
                            ``(ii) On-ramp participants.--In the case 
                        of a producer that meets the requirements of 
                        subsection (b)(4)(B) of section 196 of the 
                        Federal Agriculture Improvement and Reform Act 
                        of 1996 (7 U.S.C. 7333) and enrolls in a whole 
                        farm insurance plan under this paragraph, the 
                        Corporation shall provide a premium discount of 
                        30 percent with respect to the first year in 
                        which such producer is so enrolled.''.

SEC. 4. SINGLE INDEX INSURANCE POLICY.

    (a) In General.--Section 522(c) of the Federal Crop Insurance Act 
(7 U.S.C. 1522(c)) is amended by adding at the end the following:
            ``(20) Single index insurance policy.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Covered crop or commodity.--The term 
                        `covered crop or commodity' means any crop or 
                        commodity (including a specialty crop) on a 
                        farm except timber, forest products, animals 
                        for sport or show, and pets.
                            ``(ii) Covered policy.--The term `covered 
                        policy' means the single index insurance policy 
                        described in subparagraph (B)(i).
                            ``(iii) Covered weather condition.--
                                    ``(I) In general.--The term 
                                `covered weather condition' means any 
                                of the following weather conditions 
                                that are found to be closely correlated 
                                with agricultural income losses:
                                            ``(aa) High winds.
                                            ``(bb) Excessive moisture 
                                        and flooding.
                                            ``(cc) Extreme heat.
                                            ``(dd) Abnormal freeze 
                                        conditions.
                                            ``(ee) Wildfire.
                                            ``(ff) Hail.
                                            ``(gg) Drought.
                                            ``(hh) Any other severe 
                                        weather or growing conditions 
                                        applicable to small-scale 
                                        farmers, as determined by the 
                                        Secretary.
                                    ``(II) Data.--The existence of a 
                                weather condition described in 
                                subclause (I) shall be determined by 
                                indices that prioritize using data from 
                                the National Oceanic and Atmospheric 
                                Administration, as available, but may 
                                use other federally or State certified 
                                weather data sources, public and 
                                private satellite data, and weather and 
                                climate data and models, if necessary, 
                                as determined by the Secretary.
                    ``(B) Policy.--
                            ``(i) In general.--The Corporation shall 
                        carry out research and development, or offer to 
                        enter into 1 or more contracts with 1 or more 
                        qualified persons to carry out research and 
                        development, to develop a single index policy 
                        to insure against agricultural income losses 
                        due to 1 or more covered weather conditions.
                            ``(ii) Coverage.--Research and development 
                        on the covered policy under clause (i) shall 
                        require that coverage is available in all 50 
                        States (including Indian Tribes), the District 
                        of Columbia, American Samoa, Guam, the 
                        Commonwealth of the Northern Mariana Islands, 
                        the Commonwealth of Puerto Rico, and the Virgin 
                        Islands of the United States.
                            ``(iii) Option to buy-up or buy-down.--
                                    ``(I) In general.--Research and 
                                development on the covered policy under 
                                clause (i) shall consider permitting a 
                                holder of the covered policy to elect 
                                to buy-up to 150 percent, subject to 
                                subclause (II), or buy-down to 5 
                                percent, of the median county-level 
                                adjusted gross income for farms, in 5-
                                percent increments, to reflect the 
                                income of the individual farm business 
                                of the holder insured under the covered 
                                policy.
                                    ``(II) Limitation.--A holder of a 
                                covered policy may buy-up under 
                                subclause (I) only if the farms of the 
                                holder insured under the covered policy 
                                have at least 3 covered crops or 
                                commodities.
                            ``(iv) Priority features of policy.--In 
                        carrying out research and development on the 
                        covered policy under clause (i), the following 
                        features may be given priority:
                                    ``(I) Agricultural income losses 
                                under the covered policy include--
                                            ``(aa) losses for all 
                                        covered crops or commodities; 
                                        and
                                            ``(bb) losses to the value 
                                        of packing, packaging, or any 
                                        other similar on-farm activity 
                                        that the Corporation determines 
                                        necessary to remove a covered 
                                        crop or commodity from the 
                                        field.
                                    ``(II) Payments are made under the 
                                covered policy not later than 30 days 
                                after the occurrence of a covered 
                                weather condition in the county in 
                                which the applicable farm of the farmer 
                                is located or an adjacent county.
                                    ``(III) Provision of seasonal 
                                coverage periods.
                                    ``(IV) Provision of special 
                                consideration to concerns facing 
                                individual farm businesses--
                                            ``(aa) that have less than 
                                        $350,000 in adjusted gross 
                                        income; and
                                            ``(bb) with respect to 
                                        which a farmer is an 
                                        underserved producer (as 
                                        defined in section 
                                        508(a)(7)(A)).
                                    ``(V) Paperwork requirements are 
                                reduced for farmers seeking to obtain a 
                                covered policy.
                            ``(v) Consultation.--In carrying out 
                        research and development on the covered policy 
                        under clause (i), the Corporation--
                                    ``(I) shall hold stakeholder 
                                meetings to solicit producer and agent 
                                feedback; and
                                    ``(II) may consult with licensed 
                                actuaries with experience developing 
                                index policies insuring agricultural 
                                production.
                    ``(C) Report.--Not later than 1 year after the date 
                of enactment of this paragraph, the Corporation shall 
                make publicly available a report that describes--
                            ``(i) the results of the research and 
                        development carried out under this paragraph; 
                        and
                            ``(ii) recommendations to Congress with 
                        respect to those results, including--
                                    ``(I) any challenges to developing 
                                the covered policy; and
                                    ``(II) options to address those 
                                challenges.''.
    (b) Technical Amendment.--Section 531(a)(18) of the Federal Crop 
Insurance Act (7 U.S.C. 1531(a)(18)) is amended by striking ``section 
2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 
(7 U.S.C. 2279(e))'' and inserting ``section 2501(a) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a)).''.
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