Crop Insurance Provisions in H.R.1 (One Big Beautiful Bill)

The Crop Insurance subtitle in H.R.1 introduces several key enhancements aimed at strengthening risk management tools for farmers and ranchers:

• Increased Premium Subsidies for Beginning Farmers and Ranchers:  

  • The program now qualifies participants for up to 10 years of premium assistance, doubled from the previous 5-year limit.

  • This helps new and less-established producers access more affordable insurance options during their early years.

• Higher Coverage Levels:  

  • The maximum coverage for yield or revenue protection has been increased from 85% to 90%, providing greater protection for farmers across multiple commodities, including integrated Whole-Farm Revenue Protection policies.

• Expansion and Enhancement of the Supplemental Coverage Option (SCO):  

  • The premium subsidy for SCO has been raised from 65% to 80%.

  • Coverage levels for SCO have increased from 86% to 90%, allowing producers to choose higher levels of coverage at a more affordable cost.

• Support for Administrative and Operating Costs:  

  • The bill increases funding for the administration and oversight of crop insurance policies, especially in states experiencing high losses.

  • A minimum reimbursement rate for specialty crop policies will be established annually starting in 2026, ensuring consistent support for insurers. The total A&O (administrative and operating) reimbursements will also be adjusted annually for inflation.

• Adjustments to Premium Cost and Technological Investments:  

  • Premium support rates will be increased by 3% to 5%, depending on coverage levels, making coverage more affordable for farmers across the board.

  • Funding is increased for data systems, including data mining and warehousing, to improve program compliance, fraud detection, and actuarial accuracy.

• Innovative Risk Management: Poultry Insurance Pilot Program:  

  • The bill establishes a pilot index-based insurance program for contract poultry growers.

  • Payments will be triggered by independent indexes such as rainfall levels or utility costs, providing a new financial safety net against extreme weather or operational cost spikes that impact poultry production.

Overall, these provisions aim to make crop insurance more accessible, reliable, and responsive, especially for new farmers, those seeking higher protection levels, and specialty crop producers. The emphasis on technological improvements and risk mitigation innovations positions crop insurance as a vital tool for climate resilience and farm financial stability.