Peace Garden News

The U.S. Department of Agriculture’s Risk Management Agency (RMA) has begun implementing new crop insurance provisions included in the One Big Beautiful Bill (OB3), with changes effective for all crops with sales closing dates on or after July 1, 2025. Senator John Hoeven, chairman of the Senate Agriculture Appropriations Committee and a senior member of the Senate Agriculture Committee, played a key role in securing these enhancements.

Among the main changes is the FARMER Act, which aims to strengthen crop insurance by making higher levels of coverage more affordable for producers. The legislation increases premium support for individual-based coverage across nearly all levels by an additional 3-5%, starting at 55%. The Supplemental Coverage Option (SCO) has also been improved, raising the coverage level from 86% to 90% and increasing premium support from 65% to 80%. Producers will have access to this option in 2026 through the Enhanced Coverage Option (ECO) product, which offers identical coverage at the same cost and premium support levels. USDA plans to change the SCO policy again for the 2027 crop year.

Another significant change allows producers to purchase SCO regardless of their Area Risk Coverage (ARC) elections with the Farm Service Agency.

According to estimates, North Dakota producers are expected to receive $44 million in additional premium support in 2026 as a result of these enhancements.

The new provisions also provide better support for beginning farmers—defined as individuals who have not actively operated and managed a farm or ranch for more than ten crop years. These farmers will now receive additional crop insurance premium subsidies above the base rate: 15 percentage points for the first two crop years, 13 percentage points for the third year, 11 percentage points for the fourth year, and 10 percentage points for years five through ten.

Producers seeking more information about how these changes may affect their policies are encouraged to contact their crop insurance agents or visit the RMA website.

“The FARMER Act provisions that we secured in the One Big Beautiful Bill stand as a historic improvement to the affordability of crop insurance. We appreciate Secretary Rollins and her team at RMA for working with us to swiftly implement our legislation and deliver these benefits to U.S. farmers,” said Hoeven. “In North Dakota alone, producers are expected to receive $44 million in additional premium support as a result of these enhancements. Moreover, we’re investing in a new generation of farmers by providing additional premium support above the base rate for the first ten years of their operations, which will help secure the future of American agriculture.”