A bill to amend the Internal Revenue Code of 1986 to exclude crop insurance indemnity payments from gross income.

Read twice and referred to the Committee on Finance.

2026-05-12

Farmers who receive insurance payments when their crops are damaged or destroyed would no longer have to count those payments as income for tax purposes. This would reduce the tax burden on agricultural operations that experience crop losses due to weather, disease, or other covered events. The change would primarily benefit farmers and ranchers who carry crop insurance policies.