NU Online News Service, Feb. 21, 12:40 p.m.EST

Legislation that would provide subsidized premiums under theNational Flood Insurance Program for farmers whose properties areat-risk due to aging and substandard levee structures is beingcriticized by experts at the Heartland Institute, a think tank.

The legislation was recently introduced by Rep. John Garamendi,D-Calif.

Under the bill, the Flood Insurance for Farmers Act, H.R. 4020,coverage of agricultural structures in floodplains where leveesystems recently have been downgraded by the Federal EmergencyManagement Agency (FEMA) would be charged rates that reflect only“a low or moderate risk of flooding.”

The bill also would prohibit FEMA from requiring flood-proofingor flood damage mitigation for new or existing agriculturalstructures in such zones.

According to Garamendi, a former insurance commissioner, thebill addresses a serious problem for farmers who produce crops andraise livestock in floodplains. He said that, “As the FEMAcontinues its studies of the levee systems that protectagricultural land, many of the levees have been downgraded.”

He added that, until the levees are improved, farmers in manyplaces are unable to build new or upgrade existing agriculturalstructures necessary to conduct or increase production andbusiness.

But R.J. Lehmann, deputy director, of Heartland's Center onFinance, Insurance, and Real Estate in Washington, said the bill“does no favor for farmers by encouraging them to continue to live,work, and build on properties at risk of catastrophicflooding.”

He also said it eliminates an incentive for local communities torepair and upgrade levee systems found to be substandard, and thatit would likely add to the NFIP's more than $18 billion in debtbecause it would be forced to subsidize risks that are bothforeseeable and avoidable.

“The U.S. House of Representatives already has recognized theproblems that subsidized federal flood insurance pose by passingoverwhelmingly legislation that would phase out existing subsidiesfor second homes, commercial properties, and properties subject torepetitive losses,” Lehmann said.

The House bill is H.R. 1309, the “Flood Insurance Reform Act of2011.” It was passed by a large margin by the full House lastJuly.

“It is particularly disappointing that Rep. Garamendi, aformer insurance commissioner of the nation's largest state, wouldabandon the principles of sound risk management with a proposal tointroduce new destructive subsidies to the NFIP, which has beentargeted by the Government Accountability Office as a high-riskfederal program,” Lehmann said.

Companion legislation is also awaiting Senate action. Last week,41 senators asked the Senate leadership to act promptly on thebill.

The NFIP has been functioning under temporary reauthorizationssince Sept. 2008.

The current temporary reauthorization runs out May 31.