S. 4215: Assisting Family Farmers through Insurance Reform Measures Act of 2026

This bill, titled the Assisting Family Farmers through Insurance Reform Measures Act of 2026 (or AFFIRM Act of 2026), aims to amend the Federal Crop Insurance Act with several significant reforms to the crop insurance program in the United States. Here are the main points of what the bill would do:

1. Public Disclosure of Subsidies

The bill requires the Secretary of Agriculture to publicly disclose annual details about individuals or entities that obtain federally subsidized crop insurance. Specifically, the disclosure will include:

• The names of those receiving subsidies.
• The amount of premium subsidy they received.
• The federal indemnities paid in case of loss.

Additionally, it mandates reporting from private insurance providers on their underwriting gains and expenses related to the federally subsidized crop insurance program, while maintaining some confidentiality for those covered by catastrophic risk protection plans.

2. Adjusted Income Limitations

The bill imposes new income thresholds for receiving premium subsidies. Specifically:

• Individuals or entities with an average adjusted gross income greater than $250,000 will not receive any federal premium subsidies for additional coverage.
• There is a cap on the subsidy amount, limited to $40,000 for any individual or entity in a reinsurance year.

3. Prohibition on Premium Subsidy for Harvest Price Policies

Beginning in the 2027 reinsurance year, the federal government will not provide premium subsidies for crop insurance policies that are based on the market price of agricultural commodities at the time of harvest.

4. Limitations on Crop Insurance Providers' Returns

The bill sets a target average return of 8.9% for crop insurance providers based on retained premiums starting from the 2027 reinsurance year.

5. Caps on Administrative and Operating Expenses

The total reimbursement amount for administrative and operating costs of crop insurance providers will be capped at $900 million for the 2027 reinsurance year, with adjustments for inflation in subsequent years.

6. Renegotiation of the Standard Reinsurance Agreement

The bill allows for amendments to be made regarding the Standard Reinsurance Agreement by removing specific financial provisions, providing more flexibility in the agreement's terms.

7. Overall Goals of the Bill

The main objectives of the bill are to reduce federal spending on crop insurance, enhance transparency regarding who benefits from subsidies, and ensure that the program is more targeted towards family farmers rather than larger agribusinesses.

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