To amend the National Flood Insurance Act of 1968 to allow the construction and improvement of structures used for agricultural production in floodplains, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flood Insurance for Farmers Act of 
2012''.

SEC. 2. FLOODPLAIN MANAGEMENT CRITERIA.

    (a) In General.--Section 1361 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4102) is amended by adding at the end the following 
new subsection:
    ``(d) Treatment of Certain Structures and Areas.--
            ``(1) Requirements.--After the date of the enactment of 
        this subsection, the comprehensive criteria for land management 
        and use established pursuant to this section shall provide as 
        follows:
                    ``(A) Treatment of certain agricultural 
                structures.--Such criteria may not prohibit, limit, 
                restrict, or condition, including requiring any 
                floodproofing or flood damage mitigation activities or 
                features with respect to, the new construction or 
                substantial improvement of any agricultural structure 
                in any area identified by the Director as having 
                special flood hazards, except to the extent provided in 
                section 1315(a)(2) and subject to subparagraphs (B) and 
                (C) of this paragraph.
                    ``(B) Treatment of structures in certain areas 
                protected by levees.--Such criteria, with respect only 
                to structures in a covered levee-protected area--
                            ``(i) may not prohibit, limit, restrict, or 
                        condition, including requiring any 
                        floodproofing or flood damage mitigation 
                        activities or features with respect to, the new 
                        construction or substantial improvement of any 
                        agricultural structure; and
                            ``(ii) shall provide that any substantial 
                        improvement made to an existing residential 
                        structure shall have the lowest floor 
                        (including any basement) elevated to or above 
                        the base flood level, except that for purposes 
                        of determining whether any improvement of 
                        residential structures in such an area is 
                        substantial or not, the term `substantial 
                        damage' shall mean, for any damage caused other 
                        than by a flood event, damage for which the 
                        cost of restoring the structure to its before-
                        damaged condition would equal or exceed 100 
                        percent of the market value of the structure 
                        before the damage occurred.
                    ``(C) Treatment of existing structures in legacy 
                communities protected by levees.--Such criteria shall 
                provide that a legacy community located in a covered 
                levee-protected area may adopt adequate land use and 
                control measures that provide for the repair, 
                restoration to pre-damaged conditions, or replacement 
                of existing residential and non-residential structures 
                other than repetitive loss structures (as such term is 
                defined in section 1370).
            ``(2) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Agricultural structure.--The term 
                `agricultural structure' has the meaning given such 
                term in section 1315(a)(2)(D).
                    ``(B) Covered levee-protected area.--The term 
                `covered levee-protected area' means any area that is 
                protected by a levee that is not accredited by the 
                Administrator, but provides protection with at least 1 
                foot of freeboard above the water surface elevation of 
                the base flood for such area.
                    ``(C) Legacy community.--The term `legacy 
                community' means a community that--
                            ``(i) has a population of less than 2,000; 
                        and
                            ``(ii) is located in an area for which a 
                        substantial portion of the economy, currently 
                        is and historically was, based on agricultural 
                        production, as determined by the 
                        Administrator.''.
    (b) Exception to Existing Requirements for Agricultural 
Structures.--Section 1315(a)(2) of the National Flood Insurance Act of 
1968 (42 U.S.C. 4022(a)) is amended--
            (1) in subparagraph (A), by striking ``Notwithstanding'' 
        and inserting ``Subject to subparagraphs (B) and (C) of section 
        1361(d)(1) and notwithstanding''; and
            (2) in subparagraph (B), by striking ``To'' and inserting 
        ``Subject to subparagraphs (B) and (C) of section 1361(d)(1) 
        and to''.

SEC. 3. AVAILABILITY OF FLOOD INSURANCE COVERAGE AND CHARGEABLE RATES.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015) is amended--
            (1) in subsection (c), in the matter preceding paragraph 
        (1), by inserting ``of this subsection and to subsections (g) 
        and (h)'' before the comma; and
            (2) by adding at the end the following new subsection:
    ``(g) New Construction and Substantial Improvement of Agricultural 
Structures in Flood Hazard Areas.--Subject to section 1315(a)(2)(B) and 
subsection (h) of this section, and notwithstanding any other provision 
of this Act, the Director shall make flood insurance coverage available 
upon request for any agricultural structure described in section 
1361(d)(1)(A) that is located in any area identified by the Director as 
having special flood hazards. Such coverage shall be made available at 
chargeable premium rates that are based on estimated rates under 
section 1307(a)(2) and are consistent with the provisions of section 
1308(b)(2) applicable to such rates.
    ``(h) Structures in Covered Levee-Protected Areas.--The Director 
shall make flood insurance coverage available upon request for any 
structure that is located in an area described in subparagraph (B) or 
(C) of section 1361(d)(1) and is constructed, improved, repaired, 
restored, or replaced as described in such subparagraph, as applicable. 
Such coverage shall be made available at chargeable premium rates 
applicable to areas having a low or moderate risk of flooding (zone 
X).''.

SEC. 4. TASK FORCE ON LEGACY COMMUNITY FLOOD INSURANCE ISSUES.

    (a) Establishment; Study.--The Administrator of the Federal 
Emergency Management Agency and the Secretary of Agriculture shall 
jointly establish a task force that shall conduct a study to analyze 
the challenges faced by legacy communities located in areas designated 
as an area having special flood hazards for purposes of the national 
flood insurance program under the National Flood Insurance Act of 1968 
(42 U.S.C. 4001 et seq.).
    (b) Membership.--The task force shall consist of 15 members, 
appointed jointly by the Administrator of the Federal Emergency 
Management Agency and the Secretary of Agriculture, as follows:
            (1) One individual who is a representative of a national 
        farm organization.
            (2) One individual who is a representative of a national 
        financial organization.
            (3) One individual who is a representative of a national 
        floodplain management organization.
            (4) One individual who is a representative of a national 
        organization of flood and stormwater management agencies.
            (5) One individual who is a representative of a national 
        agricultural commodities organization.
            (6) Two individuals, each of whom is a representative of a 
        State affected by the issues specified in subsection (a).
            (7) Three individuals, who shall include one representative 
        each of the flood control associations for--
                    (A) the Central Valley of California;
                    (B) the Mississippi Valley; and
                    (C) the Missouri Valley.
            (8) Two individuals who are elected officials of units of 
        general local governments who represent legacy communities.
            (9) Three individuals who have an interest or expertise in 
        the issues specified in subsection (a).
    (c) Co-Chairs.--The Administrator of the Federal Emergency 
Management Agency and the Secretary of Agriculture shall serve as co-
chairs of the task force, or their designees.
    (d) Travel Expenses; Per Diem.--Members of the task force members 
shall not receive compensation for their service on the task force, but 
shall receive travel expenses, including per diem in lieu of 
subsistence, in accordance with sections 5702 and 5703 of title 5, 
United States Code.
    (e) Staff.--The Administrator of the Federal Emergency Management 
Agency and the Secretary of Agriculture may detail, on a reimbursable 
basis, any of the personnel of such agencies to the task force to 
assist the task force in carrying out its duties under this section.
    (f) Report.--Not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the task force 
shall submit to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate a report regarding the study conducted pursuant 
to subsection (a) that shall include any findings and conclusions of 
the study and recommended changes to the national flood insurance 
program to strengthen the economic viability and vitality of legacy 
communities, including an analysis and recommendations regarding 
allowing infill development and building expansion.
    (g) Legacy Communities.--For purposes of this section, the term 
``legacy community'' means a community that--
            (1) has a population of less than 2,000; and
            (2) is located in an area for which a substantial portion 
        of the economy, currently is and historically was, based on 
        agricultural production, as determined by the Administrator.
    (h) Termination.--The task force shall terminate upon the 
expiration of the 120-day period beginning upon the submission of the 
report required under subsection (f).

Summary: Flood Insurance for Farmers Act of 2012 - Amends the National Flood Insurance Act of 1968 with respect to development by the Administrator of the Federal Emergency Management Agency (FEMA) of comprehensive criteria designed to encourage adoption of adequate state and local measures for land-management programs in flood-prone areas. Prohibits such criteria from placing prohibitions, restraints, or conditions, including requiring floodproofing or flood damage mitigation activities or related features, upon either new construction or substantial improvement of an agricultural structure in any area having special flood hazards. Requires such criteria, with respect only to structures in certain levee-protected areas, to require any substantial improvement to an existing residential structure to have the lowest floor elevated to or above the base flood level. Requires such criteria to permit a legacy community located in a covered levee-protected area to adopt adequate land use and control measures for: (1) repair or restoration to pre-damaged conditions, or (2) replacement of existing residential and non-residential structures other than repetitive loss structures. Defines legacy community as one whose population is less than 2,000 and is located in an area for which a substantial portion of the economy currently is, and historically was, based upon agricultural production. Directs the Administrator to make flood insurance coverage available upon request for: (1) an agricultural structure located in an area having special flood hazards, and (2) structures in covered levee-protected areas. Directs the Administrator and the Secretary of Agriculture to establish jointly a task force to report to certain congressional committees on challenges faced by legacy communities located in areas having special flood hazards, including recommendations to: (1) strengthen the economic viability and vitality of such communities, and (2) allow infill development and building expansion.