To limit the amount of premium subsidy provided by the Federal Crop Insurance Corporation on behalf of any person or legal entity with an average adjusted gross income in excess of $750,000, with a delayed application of the limitation until completion of a study on the effects of the limitation.

SA 2437. Mr. THUNE submitted an amendment intended to be proposed by
him to the bill S. 3240, to reauthorize agricultural programs through
2017, and for other purposes; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. ____. LIMITATION ON PREMIUM SUBSIDY BASED ON AVERAGE
ADJUSTED GROSS INCOME.

Section 508(e) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)) (as amended by section 11023(b)) is amended by
adding at the end the following:
``(9) Limitation on premium subsidy based on average
adjusted gross income.--
``(A) Definition of average adjusted gross income.--In this
paragraph, the term `average adjusted gross income' has the
meaning given the term in section 1001D(a) of the Food
Security Act of 1985 (7 U.S.C. 1308 3a(a)).
``(B) Limitation.--Notwithstanding any other provision of
this subtitle and beginning with the 2014 reinsurance year,
in the case of any producer that is a person or legal entity
that has an average adjusted gross income in excess of
$750,000 based on the most recent data available from the
Farm Service

[[Page S4217]]

Agency as of the beginning of the reinsurance year, the total
amount of premium subsidy provided with respect to additional
coverage under subsection (c), section 508B, or section 508C
issued on behalf of the producer for a reinsurance year shall
be 15 percentage points less than the premium subsidy
provided in accordance with this subsection that would
otherwise be available for the applicable policy, plan of
insurance, and coverage level selected by the producer.
``(C) Application.--
``(i) Study.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in consultation with
the approved insurance providers, shall carry out a study to
determine the effects of the limitation described in
subparagraph (B) on--

``(I) the overall operations of the Federal crop insurance
program;
``(II) the number of producers participating in the Federal
crop insurance program;
``(III) the amount of premiums paid by participating
producers;
``(IV) any potential liability for approved insurance
providers;
``(V) any crops or growing regions that may be
disproportionately impacted;
``(VI) program rating structures;
``(VII) creation of schemes or devices to evade the impact
of the limitation; and
``(VIII) underwriting gains and losses.

``(ii) Effectiveness.--The limitation described in
subparagraph (B) shall not take effect unless the Secretary
determines, through the study described in clause (i), that
the limitation would not--

``(I) increase the premium amount paid by producers with an
average adjusted gross income of less than $750,000;
``(II) result in a decline in the availability of crop
insurance services to producers; and
``(III) increase the costs to the Federal government to
administer the Federal crop insurance program established
under this subtitle.''.

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