Shaheen Introduces Legislation to Reform Crop Insurance, Save Taxpayers More Than $40 Billion
(Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH), a senior member of the U.S. Senate Appropriations Committee and Ranking Member of the Agriculture, Rural Development, Food and Drug Administration and Related Agencies (Ag-FDA) Subcommittee, is introducing legislation to reform the federal government’s crop insurance program, save roughly $40 billion over the next ten years, level the playing field for smaller farms and target fraud and abuse in the program. The bill comes as already struggling small, diversified farms face rising costs from President Trump’s tariffs and skyrocketing fuel and fertilizer prices due to the conflict with Iran.
“American taxpayers shouldn’t be footing the bill for crop insurance companies and large agri-businesses to turn a profit on crop subsidies while small farms that actually need support don’t receive it,” said Senator Shaheen. “When I meet with farmers in my state they tell me crop insurance doesn't work for them and that the Trump Administration’s reckless policies are driving up their costs. It’s time we invest in small farms that are feeding our local communities. My legislation is a commonsense way to get help to the farmers who need it most while saving Americans money and shining a spotlight on those who abuse the federal crop insurance program.”
The federal crop insurance program is expected to cost taxpayers over $14 billion this year alone. According to the Congressional Budget Office, Shaheen’s Assisting Family Farmers through Insurance Reform Measures (AFFIRM) Act would save more than $40 billion over ten years by placing commonsense limitations, increasing transparency measures and reducing wasteful spending in the crop insurance program without reducing support for farmers who need it.
Specifically, the AFFIRM Act would:
- Limit federal crop insurance subsidies to $40,000 per farmer per year and eliminate crop insurance premium subsidies for individuals with an adjusted gross income of more than $250,000.
- Reduce government subsidy of crop insurance companies—capping government payments to insurers for administrative and operating costs at $900 million instead of $1.5 billion.
- Eliminate subsidies for Harvest Price Option insurance policies—allowing farmers to take out generous policies while preventing taxpayers from footing the bill.
- Increase transparency in government spending by requiring the reporting of all individuals or entities that receive federally subsidized crop insurance.
A copy of the bill text can be found HERE.
Shaheen first introduced the AFFIRM Act with then-Senator Jeff Flake (R-AZ) in 2015, and again with then-Senator Pat Toomey (R-PA) in 2020. The legislation is endorsed by a coalition of groups including Taxpayers for Common Sense, R Street, the Taxpayers Protection Alliance, the National Taxpayers Union, Farm Action Fund and the Environmental Working Group.
Senator Shaheen has a strong record of working to support farmers in New Hampshire. In the Fiscal Year 2026 Ag-FDA appropriations legislation, Shaheen defended conservation tools used by the state’s agricultural producers, maintained funding for Farm Service Agency staffing in county offices in the Granite State, made $10.5 billion in farm loans available to help producers access capital across the country and funded research that helps improve cultivation practices in New England. Last year, Shaheen held two separate roundtable discussions with New Hampshire farmers and agricultural producers from across the state to discuss the impacts farms experienced as a result of President Trump’s freeze on tens of billions of dollars of federal funding at USDA. In 2024, Shaheen successfully helped to secure disaster supplemental funding for farmers impacted by crop losses in 2023.
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