[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5698 Introduced in House (IH)]

<DOC>






118th CONGRESS
  1st Session
                                H. R. 5698

 To amend the Federal Crop Insurance Act to reduce Federal spending on 
                crop insurance, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 26, 2023

Mr. Blumenauer introduced the following bill; which was referred to the 
                        Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
 To amend the Federal Crop Insurance Act to reduce Federal spending on 
                crop insurance, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Assisting Family Farmers through 
Insurance Reform Measures Act'' or the ``AFFIRM Act''.

SEC. 2. CROP INSURANCE PREMIUM SUBSIDIES DISCLOSURE IN THE PUBLIC 
              INTEREST.

    Section 502(c)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1502(c)(2)) is amended--
            (1) by redesignating subparagraphs (A) and (B) as 
        subparagraphs (C) and (D), respectively; and
            (2) by inserting before subparagraph (C) (as so 
        redesignated) the following:
                    ``(A) Disclosure in the public interest.--
                Notwithstanding paragraph (1) or any other provision of 
                law, except as provided in subparagraph (B), the 
                Secretary shall on an annual basis make available to 
                the public--
                            ``(i)(I) the name of each individual or 
                        entity that obtained a federally subsidized 
                        crop insurance, livestock, or forage policy or 
                        plan of insurance during the previous 
                        reinsurance year;
                            ``(II) the amount of premium subsidy 
                        received by the individual or entity from the 
                        Corporation; and
                            ``(III) the amount of any Federal portion 
                        of indemnities paid in the event of a loss for 
                        that reinsurance year for each policy 
                        associated with that individual or entity; and
                            ``(ii) for each private insurance provider, 
                        a description by the name of the private 
                        insurance provider of--
                                    ``(I) the underwriting gains earned 
                                through participation in the federally 
                                subsidized crop insurance program; and
                                    ``(II) the amount paid under this 
                                subtitle for--
                                            ``(aa) administrative and 
                                        operating expenses;
                                            ``(bb) any Federal portion 
                                        of indemnities and reinsurance; 
                                        and
                                            ``(cc) any other purpose.
                    ``(B) Limitation.--The Secretary shall not disclose 
                under subparagraph (A) information relating to 
                individuals and entities covered by a catastrophic risk 
                protection plan offered under section 508(b).''.

SEC. 3. ADJUSTED GROSS INCOME AND PER PERSON LIMITATIONS ON SHARE OF 
              INSURANCE PREMIUMS PAID BY CORPORATION.

    Section 508(e)(1) of the Federal Crop Insurance Act (7 U.S.C. 
1508(e)(1)) is amended--
            (1) by striking ``For the purpose'' and inserting the 
        following:
                    ``(A) Payment authority.--Subject to subparagraphs 
                (B) and (C), for the purpose''; and
            (2) by adding at the end the following:
                    ``(B) Adjusted gross income limitation.--The 
                Corporation shall not pay a part of the premium for 
                additional coverage for any person or legal entity that 
                has an average adjusted gross income (as defined in 
                section 1001D(a) of the Food Security Act of 1985 (7 
                U.S.C. 1308-3a(a))) that is greater than $250,000.
                    ``(C) Per person limitation.--The Corporation shall 
                not pay more than $125,000 for any reinsurance year to 
                any person or legal entity for premiums under this 
                section.''.

SEC. 4. PROHIBITION ON PREMIUM SUBSIDY FOR HARVEST PRICE POLICIES.

    Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) 
is amended by adding at the end the following:
            ``(9) Prohibition on premium subsidy for harvest price 
        policies.--Notwithstanding any other provision of law, 
        beginning with the 2023 reinsurance year, the Corporation shall 
        not pay any amount of premium subsidy in the case of a policy 
        or plan of insurance that is based on the actual market price 
        of an agricultural commodity on the date of harvest.''.

SEC. 5. PROHIBITION ON PREMIUM SUBSIDY FOR PRODUCERS NOT ENGAGED IN 
              ACTIVE PERSONAL LABOR OR ACTIVE PERSONAL MANAGEMENT.

    Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 
1508(e)), as amended by section 4, is further amended by adding at the 
end the following:
            ``(10) Prohibition on premium subsidy for producers not 
        engaged in active personal labor active personal management.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, beginning with the 2023 reinsurance 
                year, the Corporation shall not pay any amount of 
                premium subsidy to a producer that is not engaged in 
                active personal labor or active personal management 
                with respect to the farming operation pursuant to which 
                such subsidy would apply.
                    ``(B) Definitions.--In this paragraph:
                            ``(i) Active personal labor.--The term 
                        `active personal labor' means, with respect to 
                        a producer, physical labor and activities 
                        personally performed by the producer on a 
                        farming operation--
                                    ``(I) that--
                                            ``(aa) are necessary to 
                                        such farming operation, 
                                        including land preparation, 
                                        planting, cultivating, 
                                        harvesting and marketing of 
                                        agricultural commodities;
                                            ``(bb) establish or 
                                        maintain conserving cover crops 
                                        or conserving use acreages; or
                                            ``(cc) are required for 
                                        livestock operations; and
                                    ``(II) for, with respect to a crop 
                                year, a period of at least--
                                            ``(aa) 1,000 hours; or
                                            ``(bb) 50 percent of the 
                                        total hours that would be 
                                        required to conduct a farming 
                                        operation comparable in size to 
                                        the producer's share in the 
                                        farming operation, as 
                                        determined by the Corporation.
                            ``(ii) Active personal management.--The 
                        term `active personal management' means 
                        management activities personally performed on a 
                        farming operation--
                                    ``(I) by a person with a direct or 
                                indirect ownership interest in that 
                                farming operation;
                                    ``(II) on a regular continuous, and 
                                substantial basis; and
                                    ``(III) for, with respect to a crop 
                                year, a period of at least--
                                            ``(aa) 500 hours; or
                                            ``(bb) 50 percent of the 
                                        total management hours required 
                                        for that farming operation on 
                                        an annual basis, as determined 
                                        by the Corporation.''.

SEC. 6. MAXIMUM AMOUNT OF ADDITIONAL PREVENTED PLANTING COVERAGE.

    Section 508(h)(6) of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1508(h)(6)) is amended by adding at the end the following:
                    ``(D) Maximum amount of coverage.--A crop loss of a 
                producer may only be covered by the additional 
                prevented planting coverage if, during the 3-year 
                period preceding such loss, such producer had less than 
                or equal to 2 crop losses covered by the additional 
                prevented planting coverage.''.

SEC. 7. PREMIUM REDUCTION.

    Section 508(i) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1508(i)) is amended by adding at the end the following:
            ``(5) Premium reduction.--If the Corporation makes a 
        determination that a producer has received 3 or more 
        indemnities under a plan of insurance for the same type of loss 
        during a 4-year period, the Corporation shall, with respect to 
        such producer, reduce the premium rate of such plan by 15 
        percent (except in no case may such premium rate be less than 
        zero).''.

SEC. 8. CAP ON OVERALL RATE OF RETURN FOR CROP INSURANCE PROVIDERS.

    Section 508(k)(3) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(3)) is amended--
            (1) by striking the paragraph designation and heading and 
        all that follows through ``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 2023 reinsurance year and each subsequent 
                reinsurance year shall be 8.9 percent of retained 
                premiums.''.

SEC. 9. CAP ON REIMBURSEMENTS FOR ADMINISTRATIVE AND OPERATING EXPENSES 
              OF CROP INSURANCE PROVIDERS.

    Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(4)) is amended by adding at the end the following:
                    ``(G) Additional cap on reimbursements.--
                            ``(i) In general.--Notwithstanding 
                        subparagraphs (A) through (F), the total amount 
                        of reimbursements for administrative and 
                        operating costs for the 2023 reinsurance year 
                        for all types of policies and plans of 
                        insurance shall not exceed $900,000,000.
                            ``(ii) Adjustment.--For the 2024 
                        reinsurance year and each subsequent 
                        reinsurance year, the dollar amount in effect 
                        pursuant to clause (i) shall be increased by 
                        the inflation factor established for the 
                        administrative and operating costs limitation 
                        in the 2011 Standard Reinsurance Agreement.''.

SEC. 10. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.

    Section 508(k)(8) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(8)) is amended by striking subparagraph (F).
                                 <all>