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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5104 Introduced in Senate (IS)]

<DOC>

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.

    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 2024'' or the ``AFFIRM Act of 2024''.

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:
            ``(9) Prohibition on premium subsidy for harvest price 
        policies.--Notwithstanding any other provision of law, 
        beginning with the 2024 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 2024 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 2024 reinsurance year 
                        for all types of policies and plans of 
                        insurance shall not exceed $900,000,000.
                            ``(ii) Adjustment.--For the 2025 
                        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).
                                 <all>
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