Crawford introduces FRAME Act

WASHINGTON – Congressman Rick Crawford (R-AR) introduced the Farm Risk Abatement and Mitigation Election (FRAME) Act, to give farmers a free-market option for disaster preparedness. The FRAME Act would establish tax-deferred farm savings accounts that would allow farmers a choice in disaster response measures.

“Arkansas farmers face risks and uncertainty every day. Crop failure, changing markets, insect damage, uncertain weather conditions and even natural disasters threaten farmers and their livelihood each day,” said Crawford. “The FRAME Act would give farmers the freedom to invest in a personal, private account dedicated to disaster relief. The FRAME Accounts would work much like an IRA or Health Savings Account and would give farmers options for contributing and investing.”

Like an IRA and Health Savings Accounts, Crawford’s proposed FRAME Accounts would allow contributions, capital gains and dividends to be tax-deferred. Farmers would be able to draw from the FRAME Account if a disaster should occur.

“Farmers in my district want to prepare for disasters. After the flooding Arkansas experienced this past Spring I wanted to develop a private, free-market system that would give farmers the flexibility to manage their own disaster relief funds,” said Crawford. “The FRAME Act is a common-sense bill to give the farming community the ability to have a self-supporting disaster plan. Over time, the FRAME Act will reduce reliance on government programs and give farmers the assurance they need to stay in business.

To encourage initial investment, farmers will be eligible to write-off FRAME Account contributions on their tax bill. Contributions will be tax deductible up to $50,000 per year, and farmers will retain 10% of their contributions in the form of a tax credit during the first few years after opening the account.