Fair Premiums for Farmers Act

What it does

• •Requires the Federal Crop Insurance Corporation (FCIC) to conduct research by December 31, 2027, on loss ratios for insured commodities over the preceding 10-year period, disaggregated by state and commodity.
• •Requires FCIC to research catastrophic perils or events that could generate losses materially different from expected aggregate or distributed losses for each insured commodity by state and commodity.
• •Requires FCIC to submit a congressional report by December 31, 2027, with a strategy for adjusting crop insurance premiums within 3 years based on study results, ensuring actuarial soundness and fairness to agricultural producers.
• •Mandates public comment on research results and draft premium adjustment strategy before the final report is submitted to Congress.

Why it matters

• •The text states the strategy must reflect actuarial soundness as required by existing law and ensure fairness and effective coverage for agricultural producers, indicating concern that current premiums may not accurately reflect actual loss patterns.
• •By requiring analysis of loss ratios by state and commodity, the legislation addresses potential geographic or crop-specific disparities in how premiums are set relative to actual losses.

Who is affected

• •Agricultural producers participating in federal crop insurance programs, whose premiums may be adjusted based on the study results.
• •The Federal Crop Insurance Corporation, which must conduct or contract for the research and develop the premium adjustment strategy.
• •Insurance companies and qualified contractors that may be engaged to carry out the research.

What happens next

The bill was referred to the Committee on Agriculture; it now awaits committee review and action before any further legislative steps.