Introduction
On November 28, 2025, the Federal Crop Insurance Corporation (FCIC), an agency within the U.S. Department of Agriculture (USDA), published a final rule in the Federal Register amending several regulations under 7 CFR parts 400, 407, and 457. Titled "Expanding Access to Risk Protection (EARP)," the rule implements key changes mandated by the One Big Beautiful Bill Act (OBBBA), signed into law by President Trump on July 4, 2025, as Public Law 119-21. Effective November 30, 2025, with applicability starting in the 2026 crop year for most crops, the rule aims to broaden access to crop insurance, streamline administrative processes, and address stakeholder concerns about program integrity and efficiency. This development is significant as it expands premium subsidies for beginning farmers, clarifies revenue protection mechanisms, and removes barriers for specialty crop producers, potentially stabilizing rural economies amid volatile agricultural markets.
Background and Key Players
The FCIC administers the federal crop insurance program, a public-private partnership reinsuring policies sold by Approved Insurance Providers (AIPs) to protect farmers against yield and revenue losses. The program, authorized under the Federal Crop Insurance Act (7 U.S.C. 1501-1524), covers over 100 crops and serves as a cornerstone of U.S. agricultural policy.
OBBBA, enacted in 2025, builds on prior reforms like the 2018 Farm Bill by expanding benefits for beginning and veteran farmers. Key players include FCIC and its Risk Management Agency (RMA), which collaborated with stakeholders such as AIPs, grower groups, and congressional committees. President Trump's signature on OBBBA emphasized deregulation and prosperity, aligning with Executive Order 14192, "Unleashing Prosperity Through Deregulation." Political forces include bipartisan support for farm safety nets, though debates arose over fiscal costs—estimated at minimal net impact per the rule's regulatory analysis—and equity in subsidies favoring regions like the Dakotas.
Legal precedents include FCIC's authority under 7 U.S.C. 1506(r) for policy interpretations and the Federal Arbitration Act (9 U.S.C. 1 et seq.) for dispute resolution. The rule rescinds an "automatic nullification" provision in Subpart X, citing overreach beyond statutory bounds and alignment with FAA standards for vacating arbitration awards.
Major Policy Changes
Enhanced Benefits for Beginning Farmers
A core OBBBA implementation expands premium subsidies for beginning farmers (defined as those with up to 10 crop years of experience, up from five). For the first two years, subsidies increase by 15 percentage points, tapering to 10 points by year 10. Veteran farmers receive a flat 10-point boost. As stated in the rule, "beginning farmers or ranchers will be eligible to receive a total additional premium subsidy of 15 percentage points in the first two crop years," combining with existing benefits. This addresses stakeholder feedback on barriers to entry, potentially encouraging new entrants amid an aging farmer demographic.
Harvest Price Clarifications and Revenue Protection
The rule clarifies that if harvest prices cannot be calculated per the Commodity Exchange Price Provisions (CEPP), they default to the projected price, converting coverage to yield protection with premium refunds. This ensures predictability, as the prior policy vaguely stated prices "will be determined and announced by FCIC." Perspectives vary: Producers gain certainty, but critics argue it reduces revenue protection in volatile markets.
Streamlining Prevented Planting and Administrative Processes
Administrative burdens are reduced by eliminating the requirement to verify insurance history for prevented planting eligibility under the "1 in 4" rule, focusing instead on planted and harvested history. The rule also eases production reporting for policy transfers between AIPs. Additionally, it removes "buy-up" coverage for prevented planting, citing redundancy with ad-hoc disaster aid like the 2019 Supplemental Appropriations. This aligns with Executive Order 14192's deregulation goals but may disadvantage frequent claimants in flood-prone areas.
Crop-Specific Updates and Deregulation
Dates for contract changes, cancellations, and insurance periods are moved to county-specific Special Provisions for crops like cotton, sugar beets, and fresh market tomatoes, allowing FCIC flexibility. Direct marketing is permitted for fresh market tomatoes and peppers in specified areas, removing prior prohibitions. Quality adjustments for cotton are codified, incorporating a 90 percent price threshold from 2018 Special Provisions. These changes reflect input from grower groups, such as Southeast cotton producers affected by 2015-2016 weather events.
Dispute Resolution Reforms
Aligning with Executive Order 14192, the rule limits arbitrators' authority to interpret policies, mandating adherence to FCIC determinations under Subpart X. Arbitration awards can only be challenged via the FAA, eliminating "automatic nullification" to reduce regulatory burdens and promote finality in disputes.
Implications and Perspectives
Short-term implications include improved program access, with expanded subsidies potentially increasing participation among beginning farmers by 5-10 percent, based on RMA data. Long-term, these reforms could enhance rural economic stability but raise concerns about fiscal sustainability amid rising climate risks. Stakeholder perspectives differ: Farm advocacy groups praise deregulation, while some AIPs worry about administrative complexities. No significant environmental impacts were identified under NEPA, though Tribal consultations confirmed no adverse effects.
The rule's request for comments by January 27, 2026, invites further input, potentially leading to refinements.
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