The AFFIRM Act aims to reduce federal spending on crop insurance by implementing several policy reforms. The bill requires the U.S. Department of Agriculture to publicly disclose which farmers and insurance companies receive federal crop insurance subsidies and indemnity payments each year, with limited exceptions for basic catastrophic coverage. The legislation also imposes new restrictions on subsidy eligibility, including an income cap of $250,000 adjusted gross income and a per-person subsidy limit of $40,000 annually, while eliminating federal premium subsidies for harvest-price-based insurance policies starting in 2027. Additionally, the bill caps private insurance companies' average rate of return at 8.9 percent and limits their administrative reimbursements to $900 million annually, with adjustments for inflation in subsequent years. These changes, which take effect in the 2027 reinsurance year, are designed to control federal agricultural spending while maintaining the crop insurance program's stability.
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