H.R. 5961: Flood Insurance for Farmers Act of 2025

HR5961, introduced on 2025-11-07, targets two practical problems in the National Flood Insurance Program. First, it says the FEMA Administrator may not suspend a community or place it on probation from the NFIP just because that community grants a variance for certain agricultural structures in special flood hazard zones. But the bill does not create a free pass: the variance has to come from a duly constituted State or local zoning authority or other authorized public body, and officials must make specific findings before approving it.

For new agricultural construction, the local official must determine that floodproofing or elevation to base flood elevation is not practicable. The structure also cannot be located in a designated regulatory floodway, in an area riverward of a levee or other flood control structure, or in an area subject to high-velocity wave action or seaward of flood control structures. For existing structures, officials must determine floodproofing or elevation is not practicable if the building is substantially damaged or needs substantial repairs or improvements. If that existing structure is in a regulatory floodway, any repair or improvement cannot increase base flood levels during base flood discharge.

The bill also adds guardrails meant to protect the public and the insurance system. A local official must find that the variance will not cause increased flood heights, added threats to public safety, extraordinary public expense, nuisances, fraud or victimization, or conflicts with local laws. And there is a hard claims-history cap: the structure cannot have had more than one claim payment exceeding $1,000 in any 10 consecutive-year period before the variance. Even when a variance is granted, the owner does not get a discount automatically. The premium must be the same rate that would apply if the structure had been dry floodproofed, or a comparable actuarial rate based on the risk for that zone.

The second major change is about convenience and coverage design. FEMA would have to make available one umbrella policy to every insured at renewal and every applicant with multiple structures on the same property. That applies to commercial property, residential property including multifamily rental, and agricultural property. Buying the umbrella policy would be optional, but rates could not be lower than the estimated premium rates set under section 1307(a)(1). FEMA would also have to report to Congress on how this umbrella policy works in practice no later than the end of the 5-year period beginning on the date of enactment.