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 2439. Mr. DURBIN (for himself and Mr. Coburn) 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 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 Government Accountability Office, 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 level of coverage purchased by participating
producers;

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``(IV) the amount of premiums paid by participating
producers and the Federal Government;
``(V) any potential liability for participating producers,
approved insurance providers, and the Federal Government;
``(VI) different crops or growing regions;
``(VII) program rating structures;
``(VIII) creation of schemes or devices to evade the impact
of the limitation; and
``(IX) administrative and operating expenses paid to
approved insurance providers and underwriting gains and loss
for the Federal government and approved insurance providers.

``(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) significantly 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 crop insurance coverage
available to producers; and
``(III) increase the total cost of the Federal crop
insurance program.''.

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