HR5961-119

What This Bill Does

The Flood Insurance for Farmers Act of 2025 makes it easier for farmers and agricultural property owners to obtain flood insurance for their farm buildings. Currently, structures in flood zones must meet strict elevation or floodproofing requirements to qualify for the National Flood Insurance Program. This bill allows local officials to grant variances (exceptions) for agricultural structures when meeting those requirements is not practical, while still allowing the property to participate in the federal flood insurance program.

Who Benefits and How

Farmers and agricultural property owners are the primary beneficiaries. They gain the ability to obtain flood insurance for barns, storage facilities, and other farm buildings that previously could not qualify because elevation or floodproofing was impractical or too expensive. Under the bill, properties receiving variances pay insurance premiums equivalent to what a floodproofed building would pay rather than being denied coverage entirely.

Rural communities also benefit because they can grant these agricultural variances without risking suspension or probation from the National Flood Insurance Program, which would affect all property owners in the community.

Who Bears the Burden and How

The Federal Emergency Management Agency (FEMA) bears the administrative burden of implementing the new variance program and optional umbrella policies. FEMA must also submit a report to Congress within five years evaluating the umbrella policy program.

Federal taxpayers potentially bear some risk if agricultural structures with variances experience flood damage, as these structures may not meet the same protective standards as fully compliant buildings.

Key Provisions

• Allows state and local officials to grant variances from elevation and floodproofing requirements for agricultural structures in special flood hazard areas
• Prohibits FEMA from suspending or placing communities on probation for granting these agricultural variances
• Sets insurance premium rates for variance structures equal to rates for floodproofed buildings
• Restricts variances to structures with no more than one claim over $1,000 in the past 10 years
• Creates optional umbrella flood insurance policies for commercial, multifamily, and agricultural properties with multiple structures
• Requires FEMA to report to Congress on the umbrella policy program within 5 years