II 

118TH CONGRESS 

2D SESSION S. 5104 

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 

SEPTEMBER 19, 2024 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Assisting Family 

5 Farmers through Insurance Reform Measures Act of 

6 2024’’ or the ‘‘AFFIRM Act of 2024’’. 

7 SEC. 2. CROP INSURANCE PREMIUM SUBSIDIES DISCLO8 SURE IN THE PUBLIC INTEREST. 

9 Section 502(c)(2) of the Federal Crop Insurance Act 

10 (7 U.S.C. 1502(c)(2)) is amended— 


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1 (1) by redesignating subparagraphs (A) and 

2 (B) as subparagraphs (C) and (D), respectively; and 

3 (2) by inserting before subparagraph (C) (as so 

4 redesignated) the following: 

5 ‘‘(A) DISCLOSURE IN THE PUBLIC INTER6 EST.—Notwithstanding paragraph (1) or any 

7 other provision of law, except as provided in 

8 subparagraph (B), the Secretary shall on an 

9 annual basis make available to the public— 

10 ‘‘(i)(I) the name of each individual or 

11 entity that obtained a federally subsidized 

12 crop insurance, livestock, or forage policy 

13 or plan of insurance during the previous 

14 reinsurance year; 

15 ‘‘(II) the amount of premium subsidy 

16 received by the individual or entity from 

17 the Corporation; and 

18 ‘‘(III) the amount of any Federal por19 tion of indemnities paid in the event of a 

20 loss for that reinsurance year for each pol21 icy associated with that individual or enti22 ty; and 

23 ‘‘(ii) for each private insurance pro24 vider, a description by the name of the pri25 vate insurance provider of— 


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1 ‘‘(I) the underwriting gains 

2 earned through participation in the 

3 federally subsidized crop insurance 

4 program; and 

5 ‘‘(II) the amount paid under this 

6 subtitle for— 

7 ‘‘(aa) administrative and op8 erating expenses; 

9 ‘‘(bb) any Federal portion of 

10 indemnities and reinsurance; and 

11 ‘‘(cc) any other purpose. 

12 ‘‘(B) LIMITATION.—The Secretary shall 

13 not disclose under subparagraph (A) informa14 tion relating to individuals and entities covered 

15 by a catastrophic risk protection plan offered 

16 under section 508(b).’’. 

17 SEC. 3. ADJUSTED GROSS INCOME AND PER PERSON LIMI18 TATIONS ON SHARE OF INSURANCE PRE19 MIUMS PAID BY CORPORATION. 

20 Section 508(e)(1) of the Federal Crop Insurance Act 

21 (7 U.S.C. 1508(e)(1)) is amended— 

22 (1) by striking ‘‘For the purpose’’ and inserting 

23 the following: 


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1 ‘‘(A) PAYMENT AUTHORITY.—Subject to 

2 subparagraphs (B) and (C), for the purpose’’; 

3 and 

4 (2) by adding at the end the following: 

5 ‘‘(B) ADJUSTED GROSS INCOME LIMITA6 TION.—The Corporation shall not pay a part of 

7 the premium for additional coverage for any 

8 person or legal entity that has an average ad9 justed gross income (as defined in section 

10 1001D(a) of the Food Security Act of 1985 (7 

11 U.S.C. 1308–3a(a))) that is greater than 

12 $250,000. 

13 ‘‘(C) PER PERSON LIMITATION.—The Cor14 poration shall not pay more than $40,000 for 

15 any reinsurance year to any person or legal en16 tity for premiums under this section.’’. 

17 SEC. 4. PROHIBITION ON PREMIUM SUBSIDY FOR HARVEST 

18 PRICE POLICIES. 

19 Section 508(e) of the Federal Crop Insurance Act (7 

20 U.S.C. 1508(e)) is amended by adding at the end the fol21 lowing: 

22 ‘‘(9) PROHIBITION ON PREMIUM SUBSIDY FOR

23 HARVEST PRICE POLICIES.—Notwithstanding any 

24 other provision of law, beginning with the 2024 rein25 surance year, the Corporation shall not pay any 


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1 amount of premium subsidy in the case of a policy 

2 or plan of insurance that is based on the actual mar3 ket price of an agricultural commodity on the date 

4 of harvest.’’. 

5 SEC. 5. CAP ON OVERALL RATE OF RETURN FOR CROP IN6 SURANCE PROVIDERS. 

7 Section 508(k)(3) of the Federal Crop Insurance Act 

8 (7 U.S.C. 1508(k)(3)) is amended— 

9 (1) by striking the paragraph designation and 

10 heading and all that follows through ‘‘The’’ and in11 serting the following: 

12 ‘‘(3) RISK.— 

13 ‘‘(A) SHARE OF RISK.—The’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(B) LIMITATION ON AVERAGE RATE OF

16 RETURN.—The target average rate of return for 

17 reinsured companies for the 2024 reinsurance 

18 year and each subsequent reinsurance year shall 

19 be 8.9 percent of retained premiums.’’. 

20 SEC. 6. CAP ON REIMBURSEMENTS FOR ADMINISTRATIVE 

21 AND OPERATING EXPENSES OF CROP INSUR22 ANCE PROVIDERS. 

23 Section 508(k)(4) of the Federal Crop Insurance Act 

24 (7 U.S.C. 1508(k)(4)) is amended by adding at the end 

25 the following: 


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1 ‘‘(G) ADDITIONAL CAP ON REIMBURSE2 MENTS.— 

3 ‘‘(i) IN GENERAL.—Notwithstanding 

4 subparagraphs (A) through (F), the total 

5 amount of reimbursements for administra6 tive and operating costs for the 2024 rein7 surance year for all types of policies and 

8 plans of insurance shall not exceed 

9 $900,000,000. 

10 ‘‘(ii) ADJUSTMENT.—For the 2025 re11 insurance year and each subsequent rein12 surance year, the dollar amount in effect 

13 pursuant to clause (i) shall be increased by 

14 the inflation factor established for the ad15 ministrative and operating costs limitation 

16 in the 2011 Standard Reinsurance Agree17 ment.’’. 

18 SEC. 7. RENEGOTIATION OF STANDARD REINSURANCE 

19 AGREEMENT. 

20 Section 508(k)(8) of the Federal Crop Insurance Act 

21 (7 U.S.C. 1508(k)(8)) is amended by striking subpara22 graph (F). 

Æ 


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