S-3843-119
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Sponsored by Ashley Moody (R-FL)
What it does
This bill would direct the federal crop insurance program to research and develop a temperature-based index insurance policy for specific crops — including tomatoes, peppers, sugarcane, strawberries, melons, citrus, peaches, and blueberries — and make it available nationally. The research must evaluate risk management tools for low-frequency and catastrophic cold weather events, and the resulting policy must cover either production loss or revenue loss. Unlike traditional crop insurance, claim payments under an index policy would be automatically triggered when a predetermined temperature threshold is reached, regardless of whether an individual farmer files a claim or suffers a verified loss.
Who benefits
Farmers growing the listed temperature-sensitive crops (tomatoes, peppers, sugarcane, strawberries, melons, citrus, peaches, blueberries), particularly those in frost-prone regions such as Florida, California, Georgia, and the Southeast. Smaller and mid-size farm operations that currently lack access to affordable cold-weather coverage. Agricultural insurers and actuaries who would develop and administer new index products. Rural agricultural communities economically dependent on these specialty crops. Consumers who may benefit indirectly from a more stable domestic supply of these fruits and vegetables.
Who is hurt
Taxpayers who fund the federal crop insurance program, which would bear the cost of the research and development mandate. Traditional crop insurance providers whose indemnity-based products may face competition from the new index policies. Farmers who experience actual losses but fall below the index threshold — a phenomenon known as "basis risk" — could receive no payment despite real damage. Crops not listed in the bill would remain excluded from this coverage type, potentially disadvantaging farmers of other temperature-sensitive commodities.
Supporters argue
Supporters argue that temperature-sensitive specialty crops like citrus and strawberries are disproportionately vulnerable to frost events yet are underserved by existing federal crop insurance products, leaving farmers exposed to catastrophic, uninsurable losses. They contend that index-based policies reduce administrative costs and fraud risk by eliminating the need for individual loss verification, and that the research mandate is a fiscally prudent first step — ensuring any new policy is actuarially sound before national rollout.
Opponents argue
Opponents argue that index-based policies carry inherent "basis risk," meaning a farmer can suffer a total crop loss from a frost event without triggering the temperature index, leaving them with no compensation despite paying premiums. They contend that expanding the federal crop insurance program's research mandate adds administrative costs and complexity without guaranteeing a workable product, and that private insurance markets — not federal programs — should bear the risk of developing niche specialty crop coverage.
Constitutional context
Congress has broad authority to establish and fund agricultural insurance programs under the Commerce Clause (Art. I, §8, cl. 3), as crop production and interstate commodity markets are well within the scope of economic activity subject to federal regulation under Wickard v. Filburn (1942). No significant constitutional tension is present; this bill directs a research mandate within an existing statutory program rather than creating sweeping new agency authority.
Checks and balances
Congress gains authority by directing the USDA's Risk Management Agency to conduct specific research; the executive branch (USDA/RMA) retains discretion over research methodology and policy design, and any resulting insurance product would be subject to standard administrative and congressional oversight.
Historical precedent
The federal crop insurance program has previously developed area-based and index-based products, such as the Rainfall Index and Vegetation Index policies for pasture and forage crops, which similarly use predetermined thresholds rather than individual loss verification.