I 

113TH CONGRESS 

1ST SESSION H. R. 1995 

To reform the Federal Crop Insurance Act and reduce Federal spending 

on crop insurance. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 15, 2013 

Mr. KIND (for himself, Mr. PETRI, Mr. BLUMENAUER, Ms. DELAURO, Mr. 

WAXMAN, Mr. SENSENBRENNER, Mr. MCGOVERN, and Mr. COOPER) introduced the following bill; which was referred to the Committee on Agriculture 

A BILL 

To reform the Federal Crop Insurance Act and reduce 

Federal spending on crop insurance. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Assisting Family 

5 Farmers through Insurance Reform Measures Act’’ or the 

6 ‘‘AFFIRM Act’’. 


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1 SEC. 2. ADJUSTED GROSS INCOME AND PER PERSON LIMI2 TATIONS ON SHARE OF INSURANCE PRE3 MIUMS PAID BY CORPORATION. 

4 Section 508(e)(1) of the Federal Crop Insurance Act 

5 (7 U.S.C. 1508(e)(1)) is amended— 

6 (1) by striking ‘‘For the purpose’’ and inserting 

7 the following: 

8 ‘‘(A) PAYMENT AUTHORITY.—For the pur9 pose’’; and 

10 (2) by adding at the end the following new sub11 paragraphs: 

12 ‘‘(B) ADJUSTED GROSS INCOME LIMITA13 TION.—The Corporation shall not pay a part of 

14 the premium for additional coverage for any 

15 person or legal entity that has an average ad16 justed gross income (as defined in section 

17 1001D of the Food Security Act of 1985 (7 

18 U.S.C. 1308–3a)) in excess of $250,000. 

19 ‘‘(C) PER PERSON LIMITATION.—The Cor20 poration shall not pay more than $40,000 to 

21 any person or legal entity for premiums under 

22 this section.’’. 

23 SEC. 3. CAP ON OVERALL RATE OF RETURN FOR CROP IN24 SURANCE PROVIDERS. 

25 Section 508(k)(3) of the Federal Crop Insurance Act 

26 (7 U.S.C. 1508(k)(3)) is amended— 


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1 (1) by designating paragraph (3) as subpara2 graph (A) (and adjusting the margin two ems to the 

3 right); 

4 (2) by inserting before subparagraph (A) (as so 

5 designated) the following: 

6 ‘‘(3) RISK.—’’; and 

7 (3) by adding at the end the following new sub8 paragraph: 

9 ‘‘(B) CAP ON OVERALL RATE OF RE10 TURN.—The target rate of return for all the 

11 companies combined for the 2013 and subse12 quent reinsurance years shall be 12 percent of 

13 retained premium.’’. 

14 SEC. 4. CAP ON REIMBURSEMENTS FOR ADMINISTRATIVE 

15 AND OPERATING EXPENSES OF CROP INSUR16 ANCE PROVIDERS. 

17 Section 508(k)(4) of the Federal Crop Insurance Act 

18 (7 U.S.C. 1508(k)(4)) is amended by adding at the end 

19 the following new subparagraph: 

20 ‘‘(G) ADDITIONAL CAP ON REIMBURSE21 MENTS.—Notwithstanding subparagraphs (A) 

22 through (F), total reimbursements for adminis23 trative and operating costs for the 2013 insur24 ance year for all types of policies and plans of 

25 insurance shall not exceed $900,000,000. For 


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1 each subsequent insurance year, the dollar 

2 amount in effect pursuant to the preceding sen3 tence shall be increased by the same inflation 

4 factor as established for the administrative and 

5 operating costs cap in the 2011 Standard Rein6 surance Agreement.’’. 

7 SEC. 5. BUDGET LIMITATIONS ON RENEGOTIATION OF 

8 STANDARD REINSURANCE AGREEMENT. 

9 Section 508(k)(8) of the Federal Crop Insurance Act 

10 of 1938 (7 U.S.C. 1508(k)(8)) is amended by adding at 

11 the end the following new subparagraph: 

12 ‘‘(F) REDUCTION IN CORPORATION OBLI13 GATIONS.—The Board shall ensure that any 

14 Standard Reinsurance Agreement negotiated 

15 under subparagraph (A)(ii), when compared to 

16 the immediately preceding Standard Reinsur17 ance Agreement, shall reduce, to the maximum 

18 extent practicable, the obligations of the Cor19 poration under subsections (e)(2) or (k)(4) or 

20 section 523.’’. 

21 SEC. 6. CROP INSURANCE PREMIUM SUBSIDIES DISCLO22 SURE IN THE PUBLIC INTEREST. 

23 Section 502(c)(2) of the Federal Crop Insurance Act 

24 (7 U.S.C. 1502(c)(2)) is amended— 


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1 (1) by redesignating subparagraphs (A) and 

2 (B) as subparagraphs (C) and (D) respectively; and 

3 (2) by inserting before subparagraph (C) (as so 

4 redesignated) the following: 

5 ‘‘(A) DISCLOSURE IN THE PUBLIC INTER6 EST.—Notwithstanding paragraph (1) or any 

7 other provision of law, except as provided in 

8 subparagraph (B), the Secretary shall on an 

9 annual basis make available to the public— 

10 ‘‘(i)(I) the name of each individual or 

11 entity who obtained a federally subsidized 

12 crop insurance, livestock, or forage policy 

13 or plan of insurance during the previous 

14 fiscal year; 

15 ‘‘(II) the amount of premium subsidy 

16 received by the individual or entity from 

17 the Corporation; and 

18 ‘‘(III) the amount of any Federal por19 tion of indemnities paid in the event of a 

20 loss during that fiscal year for each policy 

21 associated with that individual or entity; 

22 and 

23 ‘‘(ii) for each private insurance pro24 vider, by name— 


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1 ‘‘(I) the underwriting gains 

2 earned through participation in the 

3 federally subsidized crop insurance 

4 program; and 

5 ‘‘(II) the amount paid under this 

6 subtitle for— 

7 ‘‘(aa) administrative and op8 erating expenses; 

9 ‘‘(bb) any Federal portion of 

10 indemnities and reinsurance; and 

11 ‘‘(cc) any other purpose. 

12 ‘‘(B) LIMITATION.—The Secretary shall 

13 not disclose information pertaining to individ14 uals and entities covered by a catastrophic risk 

15 protection plan offered under section 508(b).’’. 

Æ 


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