AFFIRM Act

Summary: Assisting Family Farmers through Insurance Reform Measures Act or AFFIRM Act - Amends the Federal Crop Insurance Act to prohibit the Federal Crop Insurance Corporation (FCIC) from paying a part of the crop insurance premium for additional coverage for any person or legal entity that has an average adjusted gross income in excess of $250,000. Caps: (1) the rate of return for all crop insurance providers combined for the 2013 and subsequent reinsurance years at 12% of retained premium, and (2) total reimbursements for administrative and operating costs for the 2013 insurance year for all types of policies and plans of insurance at $900 million. Requires that any renegotiated Standard Reinsurance Agreement, when compared to the immediately preceding Agreement, shall reduce FCIC obligations. Requires annual disclosure to the public of specified crop insurance premium subsidy information. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Assisting Family Farmers through 
Insurance Reform Measures Act'' or the ``AFFIRM Act''.

SEC. 2. 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.--For the purpose''; and
            (2) by adding at the end the following new subparagraphs:
                    ``(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 of the Food Security Act of 1985 (7 
                U.S.C. 1308-3a)) in excess of $250,000.
                    ``(C) Per person limitation.--The Corporation shall 
                not pay more than $40,000 to any person or legal entity 
                for premiums under this section.''.

SEC. 3. 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 designating paragraph (3) as subparagraph (A) (and 
        adjusting the margin two ems to the right);
            (2) by inserting before subparagraph (A) (as so designated) 
        the following:
            ``(3) Risk.--''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Cap on overall rate of return.--The target 
                rate of return for all the companies combined for the 
                2013 and subsequent reinsurance years shall be 12 
                percent of retained premium.''.

SEC. 4. 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 new 
subparagraph:
                    ``(G) Additional cap on reimbursements.--
                Notwithstanding subparagraphs (A) through (F), total 
                reimbursements for administrative and operating costs 
                for the 2013 insurance year for all types of policies 
                and plans of insurance shall not exceed $900,000,000. 
                For each subsequent insurance year, the dollar amount 
                in effect pursuant to the preceding sentence shall be 
                increased by the same inflation factor as established 
                for the administrative and operating costs cap in the 
                2011 Standard Reinsurance Agreement.''.

SEC. 5. BUDGET LIMITATIONS ON RENEGOTIATION OF STANDARD REINSURANCE 
              AGREEMENT.

    Section 508(k)(8) of the Federal Crop Insurance Act of 1938 (7 
U.S.C. 1508(k)(8)) is amended by adding at the end the following new 
subparagraph:
                    ``(F) Reduction in corporation obligations.--The 
                Board shall ensure that any Standard Reinsurance 
                Agreement negotiated under subparagraph (A)(ii), when 
                compared to the immediately preceding Standard 
                Reinsurance Agreement, shall reduce, to the maximum 
                extent practicable, the obligations of the Corporation 
                under subsections (e)(2) or (k)(4) or section 523.''.

SEC. 6. 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 who obtained a federally subsidized crop 
                        insurance, livestock, or forage policy or plan 
                        of insurance during the previous fiscal 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 
                        during that fiscal year for each policy 
                        associated with that individual or entity; and
                            ``(ii) for each private insurance provider, 
                        by name--
                                    ``(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 
                information pertaining to individuals and entities 
                covered by a catastrophic risk protection plan offered 
                under section 508(b).''.