AFFIRM Act

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Assisting Family 
Farmers through Insurance Reform Measures Act'' or the ``AFFIRM Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Adjusted gross income and per person limitations on share of 
                            insurance premiums paid by Corporation.
Sec. 3. Cap on reimbursements for administrative and operating expenses 
                            of crop insurance providers.
Sec. 4. Renegotiation of Standard Reinsurance Agreement.
Sec. 5. Cap on overall rate of return for crop insurance providers.
Sec. 6. Prohibition on premium subsidy for harvest price policies.
Sec. 7. Crop insurance premium subsidies disclosure in the public 
                            interest.

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:
                    ``(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))) in excess of $250,000.
                    ``(C) Per person limitation.--The Corporation shall 
                not pay more than $40,000 per reinsurance year to any 
                person or legal entity for premiums under this 
                section.''.

SEC. 3. 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), total 
                        reimbursements for administrative and operating 
                        costs for the 2015 reinsurance year for all 
                        types of policies and plans of insurance shall 
                        not exceed $900,000,000.
                            ``(ii) Adjustment.--For the 2016 and each 
                        subsequent reinsurance year, the dollar amount 
                        in effect pursuant to clause (i) shall be 
                        increased by the same inflation factor as 
                        established for the administrative and 
                        operating costs cap in the 2011 Standard 
                        Reinsurance Agreement.''.

SEC. 4. 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).

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 ``(3) Share of risk.--The'' and inserting 
        the following:
            ``(3) Risk.--
                    ``(A) Share of risk.--The''; and
            (2) by adding at the end the following:
                    ``(B) Cap on overall rate of return.--The target 
                rate of return for all the companies combined for the 
                2015 reinsurance year and each subsequent reinsurance 
                year shall be 8.9 percent of retained premium.''.

SEC. 6. 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:
            ``(9) Prohibition on premium subsidy for harvest price 
        policies.--Notwithstanding any other provision of law and 
        beginning with the 2016 reinsurance year, the Corporation may 
        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 at the time of harvest.''.

SEC. 7. 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).''.

Summary: Assisting Family Farmers through Insurance Reform Measures Act or the AFFIRM Act This bill amends the Federal Crop Insurance Act to require the Department of Agriculture (USDA) to reduce federal crop insurance payments and disclose details regarding subsidies. The bill prohibits premium subsidies: (1) for additional coverage for any person or legal entity that has an average adjusted gross income that exceeds $250,000, (2) that exceed $40,000 per year for any person or legal entity, or (3) for policies that are based on the actual market price of an agricultural commodity at the time of harvest. The bill establishes an annual cap on total reimbursements for administrative and operating costs of crop insurance providers that begins at $900 million for 2015 and is adjusted for inflation in each subsequent year. The overall rate of return for insurance providers is capped at 8.9. The bill eliminates a requirement that any renegotiated Standard Insurance Agreement (SRA) be budget-neutral. USDA must annually disclose to the public specified details regarding the recipients and amounts of federal crop insurance subsidies.