The AFFIRM Act seeks to reduce federal spending on crop insurance by implementing multiple reforms to the Federal Crop Insurance Program. The bill requires annual public disclosure of which farmers and ranchers receive subsidies and how much they receive, establishes income limits of $250,000 adjusted gross income and caps individual subsidies at $125,000 per year, and eliminates subsidies for harvest price policies and for producers who do not actively work on their farms. The legislation also limits prevented planting coverage to producers with fewer than three crop losses in three years, reduces premiums for producers with repeated losses, and caps the profits that private insurance companies can earn from the program at 8.9 percent of premiums while capping their administrative reimbursements at $900 million annually. These changes are set to take effect beginning with the 2023 reinsurance year, affecting family farmers, large agricultural operations, and private crop insurance providers across the country.
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