Bill Summary
The "Assisting Family Farmers through Insurance Reform Measures Act of 2026" (AFFIRM Act of 2026) aims to amend the Federal Crop Insurance Act to reduce federal spending on crop insurance. Key provisions include:
1. **Public Disclosure of Subsidies**: The act mandates annual public disclosure of individuals and entities receiving federally subsidized crop insurance, including the amount of premium subsidies and federal indemnities paid.
2. **Income Limits for Subsidies**: It introduces an adjusted gross income limit of $250,000 for individuals or entities to qualify for premium assistance, and caps the subsidy amount at $40,000 per person or entity per reinsurance year.
3. **Prohibition on Harvest Price Policies**: Starting in the 2027 reinsurance year, the act prohibits premium subsidies for insurance policies based on the actual market price of agricultural commodities at harvest.
4. **Caps on Insurance Providers' Returns**: The act sets a limit on the average rate of return for crop insurance providers at 8.9% of retained premiums for the 2027 reinsurance year and beyond.
5. **Limits on Administrative Reimbursements**: It caps total reimbursements for administrative and operating costs of crop insurance providers at $900 million for the 2027 reinsurance year, with future adjustments based on inflation.
6. **Renegotiation of the Standard Reinsurance Agreement**: The act includes provisions for the renegotiation of the Standard Reinsurance Agreement, impacting how insurance providers operate within the federal framework.
Overall, the AFFIRM Act seeks to promote transparency, ensure fiscal responsibility, and protect taxpayer interests while maintaining support for family farmers.
Possible Impacts
The "Assisting Family Farmers through Insurance Reform Measures Act of 2026" (AFFIRM Act of 2026) could affect people in several ways:
1. **Increased Transparency in Crop Insurance**: The requirement for public disclosure of names, premium subsidies, and indemnity payments for crop insurance policies could lead to greater transparency in how federal funds are allocated within the agriculture sector. This may help the public and stakeholders better understand who benefits from these subsidies, potentially influencing public opinion and policy discussions about agricultural support.
2. **Impact on Wealthier Farmers**: The introduction of an adjusted gross income limitation (capping federal premium payments for individuals or entities earning over $250,000) could lead to reduced financial support for wealthier farmers. This change may encourage a shift in the agricultural landscape, where smaller, less affluent farmers could receive more targeted assistance, thereby altering competitive dynamics in farming.
3. **Changes in Insurance Product Offerings**: The prohibition on premium subsidies for harvest price policies could result in fewer farmers opting for these types of insurance plans, which are based on actual market prices at harvest. Consequently, this might lead to a rise in risk for farmers who rely on price guarantees to protect against market volatility. As a result, farmers may need to reassess their risk management strategies and potentially face increased financial uncertainty.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4215 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 4215
To amend the Federal Crop Insurance Act to reduce Federal spending on
crop insurance, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 26, 2026
Mrs. Shaheen introduced the following bill; which was read twice and
referred to the Committee on Agriculture, Nutrition, and Forestry
_______________________________________________________________________
A BILL
To amend the Federal Crop Insurance Act to reduce Federal spending on
crop insurance, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Assisting Family Farmers through
Insurance Reform Measures Act of 2026'' or the ``AFFIRM Act of 2026''.
SEC. 2. CROP INSURANCE PREMIUM SUBSIDIES DISCLOSURE IN THE PUBLIC
INTEREST.
Section 502(c)(2) of the Federal Crop Insurance Act (7 U.S.C.
1502(c)(2)) is amended--
(1) by redesignating subparagraphs (A) and (B) as
subparagraphs (C) and (D), respectively; and
(2) by inserting before subparagraph (C) (as so
redesignated) the following:
``(A) Disclosure in the public interest.--
Notwithstanding paragraph (1) or any other provision of
law, except as provided in subparagraph (B), the
Secretary shall on an annual basis make available to
the public--
``(i)(I) the name of each individual or
entity that obtained a federally subsidized
crop insurance, livestock, or forage policy or
plan of insurance during the previous
reinsurance year;
``(II) the amount of premium subsidy
received by the individual or entity from the
Corporation; and
``(III) the amount of any Federal portion
of indemnities paid in the event of a loss for
that reinsurance year for each policy
associated with that individual or entity; and
``(ii) for each private insurance provider,
a description by the name of the private
insurance provider of--
``(I) the underwriting gains earned
through participation in the federally
subsidized crop insurance program; and
``(II) the amount paid under this
subtitle for--
``(aa) administrative and
operating expenses;
``(bb) any Federal portion
of indemnities and reinsurance;
and
``(cc) any other purpose.
``(B) Limitation.--The Secretary shall not disclose
under subparagraph (A) information relating to
individuals and entities covered by a catastrophic risk
protection plan offered under section 508(b).''.
SEC. 3. ADJUSTED GROSS INCOME AND PER PERSON LIMITATIONS ON SHARE OF
INSURANCE PREMIUMS PAID BY CORPORATION.
Section 508(e)(1) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)(1)) is amended--
(1) by striking ``For the purpose'' and inserting the
following:
``(A) Payment authority.--Subject to subparagraphs
(B) and (C), for the purpose''; and
(2) by adding at the end the following:
``(B) Adjusted gross income limitation.--The
Corporation shall not pay a part of the premium for
additional coverage for any person or legal entity that
has an average adjusted gross income (as defined in
section 1001D(a) of the Food Security Act of 1985 (7
U.S.C. 1308-3a(a))) that is greater than $250,000.
``(C) Per person limitation.--The Corporation shall
not pay more than $40,000 for any reinsurance year to
any person or legal entity for premiums under this
section.''.
SEC. 4. PROHIBITION ON PREMIUM SUBSIDY FOR HARVEST PRICE POLICIES.
Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e))
is amended by adding at the end the following:
``(10) Prohibition on premium subsidy for harvest price
policies.--Notwithstanding any other provision of law,
beginning with the 2027 reinsurance year, the Corporation shall
not pay any amount of premium subsidy in the case of a policy
or plan of insurance that is based on the actual market price
of an agricultural commodity on the date of harvest.''.
SEC. 5. CAP ON OVERALL RATE OF RETURN FOR CROP INSURANCE PROVIDERS.
Section 508(k)(3) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)(3)) is amended--
(1) by striking the paragraph designation and heading and
all that follows through ``The'' and inserting the following:
``(3) Risk.--
``(A) Share of risk.--The''; and
(2) by adding at the end the following:
``(B) Limitation on average rate of return.--The
target average rate of return for reinsured companies
for the 2027 reinsurance year and each subsequent
reinsurance year shall be 8.9 percent of retained
premiums.''.
SEC. 6. CAP ON REIMBURSEMENTS FOR ADMINISTRATIVE AND OPERATING EXPENSES
OF CROP INSURANCE PROVIDERS.
Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)(4)) is amended by adding at the end the following:
``(G) Additional cap on reimbursements.--
``(i) In general.--Notwithstanding
subparagraphs (A) through (F), the total amount
of reimbursements for administrative and
operating costs for the 2027 reinsurance year
for all types of policies and plans of
insurance shall not exceed $900,000,000.
``(ii) Adjustment.--For the 2028
reinsurance year and each subsequent
reinsurance year, the dollar amount in effect
pursuant to clause (i) shall be increased by
the inflation factor established for the
administrative and operating costs limitation
in the 2011 Standard Reinsurance Agreement.''.
SEC. 7. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.
Section 508(k)(8) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)(8)) is amended by striking subparagraph (F).
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