Crop Insurance Reform: Subsidy Limits and Transparency for Farmers and Insurers.
This law introduces significant changes to the federal crop insurance program, aiming to reduce public spending. Key changes include implementing income and monetary caps on premium subsidies for farmers and increasing transparency by mandating annual disclosure of who received subsidies and how much. Furthermore, the act limits the profits and administrative costs of insurance companies participating in the program.
Key points
Individuals or entities with an average adjusted gross income exceeding $250,000 will lose eligibility for federal premium subsidies for additional crop coverage.
A new annual cap of $40,000 is placed on the premium subsidy amount any single person or entity can receive.
The government must annually disclose the names of subsidy recipients, the amounts received, and the indemnities paid, increasing program transparency.
Limits are placed on the maximum profit (capped at 8.9%) and administrative expense reimbursements ($900 million cap) for private insurance companies within the federal program.
Expired
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