HR2435-119

What This Bill Does

The Save Our Small Farms Act rewrites pieces of USDA's Noninsured Crop Disaster Assistance Program and whole-farm revenue protection. For NAP, USDA must expand crops with local average market prices, support voluntary graduation to whole-farm risk management insurance, create pilots for emerging producer needs, streamline records and acreage reports for diverse, small-scale, urban, and direct-to-consumer systems, allow two reports per year, create a voluntary revenue-based coverage option using IRS Schedule F, and build an on-ramp to whole-farm insurance with 25 percent and 50 percent premium discounts tied to transition milestones. It lets hand-harvested or rapidly deteriorating crop producers file loss notices 120 hours or more after loss, allows remote appraisals with photos, drone footage, or trained field office staff when adjusters are unavailable, raises coverage from 65 percent to 100 percent in one provision, raises the payment limit to $600,000 for specified producers, offers a 25 percent premium rate, and requires outreach through technical assistance providers, extension offices, and state agriculture departments. For whole-farm insurance, it pushes participation by direct-market and local producers, removes a $1.5 million liability limit, requires resource-conserving crop rotation eligibility, annual reviews of insurable revenue limits, Schedule F revenue history, appeal rights for revenue guarantee adjustments, higher growth expansion limits, written rationales for rejected applications, and reports to agriculture committees.

Who Benefits and How

Small diversified farmers benefit from streamlined acreage reporting, Schedule F revenue documentation, and a revenue-based NAP option. Beginning farmers benefit from a higher $600,000 payment limit, reduced premiums, and outreach targeted to newer producers. Socially disadvantaged farmers benefit from premium discounts, outreach, and a transition path from NAP to whole-farm insurance. Veteran farmers and ranchers benefit from the same higher payment cap and 25 percent premium treatment. Direct-to-consumer producers benefit from whole-farm reforms that recognize local and farm-identity-preserved marketing. Hand-harvested crop producers benefit from later loss notices and remote appraisal alternatives when crops deteriorate quickly.

Who Bears the Burden and How

USDA Farm Service Agency staff must build streamlined NAP reporting, revenue-based coverage, remote appraisal training, outreach, and pilot projects. Risk Management Agency staff must review revenue guarantee adjustments, hear appeals, and coordinate whole-farm policy changes. Approved insurance providers must accept Schedule F unless they document incomplete records and must provide written rejection rationales. Federal Crop Insurance Corporation staff must review insurable revenue limits annually and implement whole-farm modifications within 18 months. Federal taxpayers bear the cost of higher coverage, larger payment caps, premium discounts, and expanded crop insurance support.

Key Provisions

• Creates streamlined NAP records and acreage reporting for diverse, small-scale, urban, and direct-to-consumer production systems.
• Establishes a voluntary revenue-based NAP option using IRS Schedule F and a transition path to whole-farm insurance.
• Provides 25 percent and 50 percent premium discounts for producers moving from NAP to whole-farm risk management coverage.
• Allows delayed loss notices and remote or trained-field-staff appraisals for hand-harvested or rapidly deteriorating crops.
• Raises payment limits and lowers premiums for limited resource, beginning, socially disadvantaged, veteran, and revenue-option producers.
• Requires whole-farm revenue protection reforms on direct-market producers, revenue limits, Schedule F records, appeals, growth expansion, rejection notices, and annual reports.