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