S 231 — WEATHER Act of 2025

Summary

Withstanding Extreme Agricultural Threats by Harvesting Economic Resilience Act of 2025 or the WEATHER Act of 2025This bill requires the federal crop insurance program (FCIP) to provide for the research and development of a single index insurance policy to insure against agricultural income losses due to covered weather conditions.Specifically, the FCIP must develop a single index policy that is available in every state, each U.S. territory, and the District of Columbia to insure against agricultural income losses due to one or more covered weather conditions. Covered weather conditions are those found to be closely correlated with agricultural income losses, including high winds, excessive moisture and flooding, extreme heat, abnormal freeze conditions, wildfire, hail, drought, and any other severe weather or growing conditions applicable to small-scale farmers.Under an index policy, claim payments are generally triggered based on a predetermined index that is entirely independent of the individual farm operation (e.g., rainfall level). Under such a policy, the payments are automatically triggered when the index reaches a certain level rather than when an insured farmer files a claim. In carrying out the research and development, the FCIP must hold stakeholder meetings to solicit producer and agent feedback.In addition, the FCIP must make publicly available a report on the results of the research and development, and any recommendations to Congress with respect to those results.

Bill Text

• Introduced Introduced in Senate Current html January 23, 2025

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill introduces provisions for a new single index insurance policy under the Federal Crop Insurance Act.

• 7 U.S.C. 1522(c)

  (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.

  This provision adds a new section to authorize research and development of a single index insurance policy aimed at mitigating agricultural income losses due to specific weather conditions.

• 7 U.S.C. 1531(a)(18)

  section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)) → section 2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a)).

  This technical amendment updates the reference to the correct section of the Food, Agriculture, Conservation, and Trade Act of 1990.

Action History

1. January 23, 2025

   Introduced in Senate

2. January 23, 2025

   Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

Sponsors

• Peter Welch · Primary
• Elizabeth Warren · Cosponsor
• Richard Blumenthal · Cosponsor
• Christopher Murphy · Cosponsor
• Alex Padilla · Cosponsor
• Bernard Sanders · Cosponsor
• Chris Van Hollen · Cosponsor

Subjects