H.R.3283 - Federal Agriculture Risk Management Enhancement and Resilience Act; FARMER Act (119th Congress)
Summary
H.R.3283, the FARMER Act, aims to amend the Federal Crop Insurance Act to enhance premium support for specific crop insurance plans. This includes individual farm-based revenue protection or yield protection plans, particularly those utilizing enterprise or whole farm units. The bill also seeks to modify the supplemental coverage option and mandates a study on its feasibility for larger counties.
Expected Effects
The act would likely result in increased financial support for farmers through enhanced crop insurance premium subsidies. It may also lead to adjustments in coverage levels and potentially broader supplemental coverage options. The study could inform future policy changes regarding crop insurance in larger counties.
Potential Benefits
- Increased financial security for farmers through higher premium support.
- Encourages farmers to adopt risk management strategies using crop insurance.
- Potential for improved supplemental coverage options based on the mandated study.
- Could lead to more stable agricultural production and reduced reliance on ad-hoc disaster assistance.
- May help to stabilize farm incomes, particularly in years with adverse weather conditions.
Potential Disadvantages
- Increased government spending on crop insurance subsidies.
- Potential for moral hazard, where farmers take on more risk knowing they are heavily subsidized.
- The study on supplemental coverage options may not yield actionable results.
- Could disproportionately benefit larger farms that utilize enterprise or whole farm units.
- May not address the underlying issues of declining farm profitability or market volatility.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the General Welfare Clause (Article I, Section 8) of the Constitution, which allows Congress to provide for the general welfare of the United States. Supporting agriculture and ensuring a stable food supply can be argued as promoting the general welfare. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).