Save Our Small Farms Act of 2024

Bill: 118-hr-8611
Sponsor: full_name: Rep. Hayes, Jahana [D-CT-5]
Introduced: 2024-06-04
Policy area: Agriculture and Food
Latest action: action_date: 2024-09-03
text: Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 8611 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.

1. Short title This Act may be cited as the Save Our Small Farms Act of 2024 . 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). . 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. . 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) ). .