Bill Overview
Title: Flood Insurance for Farmers Act of 2022
Description: This bill revises the National Flood Insurance Program to allow exemptions of certain agricultural structures from flood-proofing or elevation standards while receiving coverage under the program. The bill also provides for optional umbrella coverage for commercial, residential (including multifamily rental units), and agricultural property to be made available to all applicants with multiple structures on the same property.
Sponsors: Rep. Garamendi, John [D-CA-3]
Target Audience
Population: people living in rural and agricultural areas globally
Estimated Size: 2000000
- The bill focuses on revising insurance protocols under the National Flood Insurance Program that pertain specifically to agricultural structures.
- Farmers with agricultural structures in flood-prone areas will likely benefit from this bill.
- The presence of an exemption from flood-proofing means farmers can save costs while still insuring their properties.
- The optional umbrella coverage affects any applicants who own multiple structures—this includes farmers, residential owners with multi-unit properties, and commercial property owners.
Reasoning
- The policy targets primarily American farmers and other property owners who are at risk of flooding.
- It provides exemptions from certain standards, which should reduce costs for farmers needing insurance.
- With a budget of $2 billion spread over 10 years, the policy can cover a substantial portion of the 2 million at-risk farms, depending on their flood-prone status and multi-structure ownership.
- The additional cost-saving and coverage flexibility of umbrella policies should also enhance overall wellbeing, depending on the diversity of property types covered under the policy.
Simulated Interviews
Farmer (Midwest, USA)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 12/20
Statement of Opinion:
- This policy would make it more financially feasible for me to insure all my structures, not just the main house.
- I'm relieved that I won't need costly modifications to qualify for coverage.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Farmer (Southeast, USA)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- Being able to insure my greenhouses without costly flood-proofing is a huge relief.
- The umbrella coverage helps streamline my insurance, which is very attractive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
Farmer (Southwest, USA)
Age: 60 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- This policy is not very relevant to my current situation.
- It's great for those who deal with flooding regularly, but it's not a priority for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Rural Property Manager (Upper Midwest, USA)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- This policy takes a load off my mind regarding the possibility of flood damage across the properties I manage.
- It could attract more tenants knowing there is insurance backing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 5 |
Commercial Property Owner (Northeast, USA)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 8.0 years
Commonness: 13/20
Statement of Opinion:
- The umbrella coverage is a nice addition, but flooding isn’t a primary concern for my property.
- Could enhance my insurance coverage strategy in the long run.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Farmer (Pacific Northwest, USA)
Age: 52 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 9/20
Statement of Opinion:
- While floods aren't a direct concern, having more comprehensive insurance options is always beneficial.
- I would need more details on how exactly this policy would be advantageous.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Farmer (Southeast, USA)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 11/20
Statement of Opinion:
- This might reduce financial stress significantly, as I'm always concerned about potential flood damage without full coverage.
- It may allow me to expand without worrying about extra flood-proofing costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 4 |
Residential Property Developer (Midwest, USA)
Age: 36 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- The policy might help me offer better insurance packages to prospective home buyers.
- Benefits me indirectly but could attract new clients and simplify the development process.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Retired Farmer (Gulf Coast, USA)
Age: 64 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 14/20
Statement of Opinion:
- If enacted earlier, this policy would have been advantageous for my farming operations.
- Currently, my concern is low as I'm no longer directly involved in farming.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Small Business Owner (Appalachia, USA)
Age: 43 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- It’s good to know that there are better insurance options, though personally I'm not directly affected by this.
- For any future expansions that could involve multiple buildings, it’s reassuring.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $200000000 (Low: $150000000, High: $250000000)
Year 2: $205000000 (Low: $153000000, High: $255000000)
Year 3: $210125000 (Low: $156060000, High: $262650000)
Year 5: $220625000 (Low: $164300000, High: $275400000)
Year 10: $243000000 (Low: $181500000, High: $302500000)
Year 100: $300000000 (Low: $225000000, High: $375000000)
Key Considerations
- Flood insurance claims costs could fluctuate significantly based on weather events; estimates assume average flood years.
- The exemption from flood-proofing standards could increase risk during major flooding events, potentially raising costs for the National Flood Insurance Program.
- The impact on tax revenues depends on precise changes in insurance premiums and government spending responses.