Congress quietly raises farm insurance subsidies—taxpayers foot the bill
S. 1693 — FARMER Act of 2025 · Filed by John Hoeven (R-ND) · 10 cosponsors · Introduced May 8, 2025 · Referred to committee
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What it does
The FARMER Act increases federal subsidies for crop insurance premiums paid by farmers, raising support from existing levels to 77–80% of premiums for revenue and yield protection plans. It also directs the USDA to study whether supplemental crop insurance can be expanded to cover larger geographic areas. The bill benefits farmers by reducing their out-of-pocket insurance costs.
Why we flagged it
The bill's core function is to increase federal premium subsidies for crop insurance—a direct transfer of public funds to reduce farmer costs. This is a subsidy expansion, not a structural reform or risk-management innovation.
What the text implies
- Higher federal crop insurance subsidies may reduce farmer incentive to diversify crops or adopt risk-reduction practices, potentially locking in commodity-dependent agriculture.
- The study on expanded supplemental coverage (Section 4) may lead to future legislation expanding subsidies further, creating a precedent for incremental subsidy growth.
The full analysis lists 3 implications of this text.
Who stands to gain
commodity farmers (corn, soybeans, wheat, cotton); crop insurance companies (indirectly, through higher premium volume); agricultural equipment manufacturers (TSCO)