[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5629 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 5629

 To amend the Federal Crop Insurance Act and Food Security Act of 1985 
  to enact reforms to farm subsidies and crop insurance called for in 
             President Trump's budget for fiscal year 2019.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 26, 2018

 Mr. Norman (for himself and Mr. Gosar) introduced the following bill; 
           which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
 To amend the Federal Crop Insurance Act and Food Security Act of 1985 
  to enact reforms to farm subsidies and crop insurance called for in 
             President Trump's budget for fiscal year 2019.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``President Trump's 
Farm Bill Reforms Act of 2018''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--REDUCING FARM SUBSIDY PAYMENTS

Sec. 101. Reduction of premium subsidies.
Sec. 102. Reduction of stacked income protection plan for producers of 
                            upland cotton.
Sec. 103. Elimination of separate payment limitation for peanuts.
Sec. 104. Terminating use of commodity certificates to pay off 
                            marketing assistance loans.
      TITLE II--ELIGIBILITY REQUIREMENTS FOR FARM SUBSIDY PAYMENTS

Sec. 201. Adjusted gross income limits for crop insurance premium 
                            subsidies.
Sec. 202. Adjusted gross income limits for commodity and conservation 
                            programs.
Sec. 203. Payments limited to active farmers.
        TITLE III--TARGET RATE OF RETURN FOR INSURANCE COMPANIES

Sec. 301. Reducing target rate of return for insurance companies.

                TITLE I--REDUCING FARM SUBSIDY PAYMENTS

SEC. 101. REDUCTION OF PREMIUM SUBSIDIES.

    Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) 
is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (B)(i), by striking ``67 
                percent'' and inserting ``52 percent'';
                    (B) in subparagraph (C)(i), by striking ``64 
                percent'' and inserting ``49 percent'';
                    (C) in subparagraph (D)(i), by striking ``59 
                percent'' and inserting ``44 percent'';
                    (D) in subparagraph (E)(i), by striking ``55 
                percent'' and inserting ``40 percent'';
                    (E) in subparagraph (F)(i), by striking ``48 
                percent'' and inserting ``33 percent'';
                    (F) in subparagraph (G)(i), by striking ``38 
                percent'' and inserting ``23 percent''; and
                    (G) in subparagraph (H)(i), by striking ``65 
                percent'' and inserting ``50 percent'';
            (2) in paragraph (6)--
                    (A) in subparagraph (A)(i), by striking ``59 
                percent'' and inserting ``44 percent'';
                    (B) in subparagraph (B)(i), by striking ``55 
                percent'' and inserting ``40 percent'';
                    (C) in subparagraph (C)(i), by striking ``49 
                percent'' and inserting ``34 percent''; and
                    (D) in subparagraph (D)(i), by striking ``44 
                percent'' and inserting ``29 percent''; and
            (3) in paragraph (7)--
                    (A) in subparagraph (A)(i), by striking ``59 
                percent'' and inserting ``44 percent'';
                    (B) in subparagraph (B)(i), by striking ``55 
                percent'' and inserting ``40 percent''; and
                    (C) in subparagraph (C)(i), by striking ``51 
                percent'' and inserting ``36 percent''.

SEC. 102. REDUCTION OF STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF 
              UPLAND COTTON.

    Section 508B(d)(1) of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1508b(d)(1)) is amended by striking ``80 percent'' and inserting 
``65 percent''.

SEC. 103. ELIMINATION OF SEPARATE PAYMENT LIMITATION FOR PEANUTS.

    (a) Uniform Payment Limitations for Covered Commodities.--
            (1) In general.--Section 1001(b) of the Food Security Act 
        of 1985 (7 U.S.C. 1308(b)) is amended--
                    (A) in the subsection heading by striking ``(OTHER 
                THAN PEANUTS)''; and
                    (B) by striking ``(other than for peanuts)''; and
            (2) Payment limitation for peanuts.--Section 1001(c) of the 
        Food Security Act of 1985 (7 U.S.C. 1308(c)) is repealed.
    (b) Conforming Amendments.--Title X of the Food Security Act of 
1985 is amended--
            (1) in section 1001 (7 U.S.C. 1308)--
                    (A) by striking ``subsections (b) and (c)'' each 
                place it appears and inserting ``subsection (b)'';
                    (B) in subsection (f)(2), by striking ``Subsections 
                (b) and (c)'' and inserting ``Subsection (b)'';
                    (C) by striking ``subsection (b) or (c)'' both 
                places it appears and inserting ``subsection (b)'';
                    (D) in subsection (f)(5)(B), by striking 
                ``subsection (b), (c), or (d)'' and inserting 
                ``subsection (b) or (d)''; and
                    (E) in subsection (f)(6)(B), by striking 
                ``subsections (b), (c), and (d)'' and inserting 
                ``subsections (b) and (d)'';
            (2) in section 1001A (7 U.S.C. 1308-1)--
                    (A) in subsection (a), by striking ``subsections 
                (b) and (c)'' and inserting ``subsection (b)''; and
                    (B) in subsection (b)(1), by striking ``subsection 
                (b) or (c)'' and inserting ``subsection (b)''; and
            (3) in section 1001B(a) (7 U.S.C. 1308-2(a)), by striking 
        ``subsections (b) and (c)'' and inserting ``subsection (b)''.
    (c) Applicability.--The amendments made by this section shall apply 
beginning with the 2019 crop year.

SEC. 104. TERMINATING USE OF COMMODITY CERTIFICATES TO PAY OFF 
              MARKETING ASSISTANCE LOANS.

    (a) Terminating Use of Commodity Certificates.--Subtitle G of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7286(c)(3)) is amended--
            (1) by striking section 166; and
            (2) by redesignating section 167 as section 166.
    (b) Applicability.--The amendments made by this section shall apply 
beginning with the 2019 crop year.

      TITLE II--ELIGIBILITY REQUIREMENTS FOR FARM SUBSIDY PAYMENTS

SEC. 201. ADJUSTED GROSS INCOME LIMITS FOR CROP INSURANCE PREMIUM 
              SUBSIDIES.

    Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 
1508(e)), as amended by section 101, is further amended by adding at 
the end the following new paragraph:
            ``(10) Adjusted gross income limitation.--A producer shall 
        not be eligible to obtain premium assistance for a crop year 
        under this subsection if the average adjusted gross income (as 
        defined in section 1001D of the Food Security Act of 1985 (7 
        U.S.C. 1308-3a)) of such producer exceeds $500,000 for the 
        preceding crop year.''.

SEC. 202. ADJUSTED GROSS INCOME LIMITS FOR COMMODITY AND CONSERVATION 
              PROGRAMS.

    Section 1001D(b)(1) of the Food Security Act of 1985 (7 U.S.C. 
1308-3a(b)(1)) is amended by striking ``$900,000'' and inserting 
``$500,000''.

SEC. 203. PAYMENTS LIMITED TO ACTIVE FARMERS.

    Section 1001A(b) of the Food Security Act of 1985 (7 U.S.C. 1308-1) 
is amended by adding the following new paragraph:
            ``(3) Limitation.--With respect to a farming operation, no 
        more than one person shall qualify as a farm manager actively 
        engaged in farming for purposes of receiving a payment 
        described in subsection (b) or (c) of section 1001.''.

        TITLE III--TARGET RATE OF RETURN FOR INSURANCE COMPANIES

SEC. 301. REDUCING TARGET RATE OF RETURN FOR INSURANCE COMPANIES.

    Section 508(k)(3) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(3)) is amended--
            (1) by striking ``(3) Share of risk.--The'' and inserting 
        the following:
            ``(3) Risk.--
                    ``(A) Share of risk.--The''; and
            (2) by adding at the end the following:
                    ``(B) Limitation on average rate of return.--The 
                target average rate of return for reinsured companies 
                for the 2018 reinsurance year and each subsequent 
                reinsurance year shall be 12 percent of retained 
                premiums.''.
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