I 

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. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘President Trump’s Farm Bill Reforms Act of 2018’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—REDUCING FARM SUBSIDY PAYMENTS 


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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. 

1 TITLE I—REDUCING FARM 

2 SUBSIDY PAYMENTS 

3 SEC. 101. REDUCTION OF PREMIUM SUBSIDIES. 

4 Section 508(e) of the Federal Crop Insurance Act (7 

5 U.S.C. 1508(e)) is amended— 

6 (1) in paragraph (2)— 

7 (A) in subparagraph (B)(i), by striking 

8 ‘‘67 percent’’ and inserting ‘‘52 percent’’; 

9 (B) in subparagraph (C)(i), by striking 

10 ‘‘64 percent’’ and inserting ‘‘49 percent’’; 

11 (C) in subparagraph (D)(i), by striking 

12 ‘‘59 percent’’ and inserting ‘‘44 percent’’; 

13 (D) in subparagraph (E)(i), by striking 

14 ‘‘55 percent’’ and inserting ‘‘40 percent’’; 

15 (E) in subparagraph (F)(i), by striking 

16 ‘‘48 percent’’ and inserting ‘‘33 percent’’; 


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1 (F) in subparagraph (G)(i), by striking 

2 ‘‘38 percent’’ and inserting ‘‘23 percent’’; and 

3 (G) in subparagraph (H)(i), by striking 

4 ‘‘65 percent’’ and inserting ‘‘50 percent’’; 

5 (2) in paragraph (6)— 

6 (A) in subparagraph (A)(i), by striking 

7 ‘‘59 percent’’ and inserting ‘‘44 percent’’; 

8 (B) in subparagraph (B)(i), by striking 

9 ‘‘55 percent’’ and inserting ‘‘40 percent’’; 

10 (C) in subparagraph (C)(i), by striking 

11 ‘‘49 percent’’ and inserting ‘‘34 percent’’; and 

12 (D) in subparagraph (D)(i), by striking 

13 ‘‘44 percent’’ and inserting ‘‘29 percent’’; and 

14 (3) in paragraph (7)— 

15 (A) in subparagraph (A)(i), by striking 

16 ‘‘59 percent’’ and inserting ‘‘44 percent’’; 

17 (B) in subparagraph (B)(i), by striking 

18 ‘‘55 percent’’ and inserting ‘‘40 percent’’; and 

19 (C) in subparagraph (C)(i), by striking 

20 ‘‘51 percent’’ and inserting ‘‘36 percent’’. 

21 SEC. 102. REDUCTION OF STACKED INCOME PROTECTION 

22 PLAN FOR PRODUCERS OF UPLAND COTTON. 

23 Section 508B(d)(1) of the Agricultural Adjustment 

24 Act of 1938 (7 U.S.C. 1508b(d)(1)) is amended by strik25 ing ‘‘80 percent’’ and inserting ‘‘65 percent’’. 


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1 SEC. 103. ELIMINATION OF SEPARATE PAYMENT LIMITA2 TION FOR PEANUTS. 

3 (a) UNIFORM PAYMENT LIMITATIONS FOR COVERED

4 COMMODITIES.— 

5 (1) IN GENERAL.—Section 1001(b) of the Food 

6 Security Act of 1985 (7 U.S.C. 1308(b)) is amend7 ed— 

8 (A) in the subsection heading by striking 

9 ‘‘(OTHER THAN PEANUTS)’’; and 

10 (B) by striking ‘‘(other than for peanuts)’’; 

11 and 

12 (2) PAYMENT LIMITATION FOR PEANUTS.—Sec13 tion 1001(c) of the Food Security Act of 1985 (7 

14 U.S.C. 1308(c)) is repealed. 

15 (b) CONFORMING AMENDMENTS.—Title X of the 

16 Food Security Act of 1985 is amended— 

17 (1) in section 1001 (7 U.S.C. 1308)— 

18 (A) by striking ‘‘subsections (b) and (c)’’ 

19 each place it appears and inserting ‘‘subsection 

20 (b)’’; 

21 (B) in subsection (f)(2), by striking ‘‘Sub22 sections (b) and (c)’’ and inserting ‘‘Subsection 

23 (b)’’; 

24 (C) by striking ‘‘subsection (b) or (c)’’ 

25 both places it appears and inserting ‘‘subsection 

26 (b)’’; 


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1 (D) in subsection (f)(5)(B), by striking 

2 ‘‘subsection (b), (c), or (d)’’ and inserting ‘‘sub3 section (b) or (d)’’; and 

4 (E) in subsection (f)(6)(B), by striking 

5 ‘‘subsections (b), (c), and (d)’’ and inserting 

6 ‘‘subsections (b) and (d)’’; 

7 (2) in section 1001A (7 U.S.C. 1308–1)— 

8 (A) in subsection (a), by striking ‘‘sub9 sections (b) and (c)’’ and inserting ‘‘subsection 

10 (b)’’; and 

11 (B) in subsection (b)(1), by striking ‘‘sub12 section (b) or (c)’’ and inserting ‘‘subsection 

13 (b)’’; and 

14 (3) in section 1001B(a) (7 U.S.C. 1308–2(a)), 

15 by striking ‘‘subsections (b) and (c)’’ and inserting 

16 ‘‘subsection (b)’’. 

17 (c) APPLICABILITY.—The amendments made by this 

18 section shall apply beginning with the 2019 crop year. 

19 SEC. 104. TERMINATING USE OF COMMODITY CERTIFI20 CATES TO PAY OFF MARKETING ASSISTANCE 

21 LOANS. 

22 (a) TERMINATING USE OF COMMODITY CERTIFI23 CATES.—Subtitle G of the Federal Agriculture Improve24 ment and Reform Act of 1996 (7 U.S.C. 7286(c)(3)) is 

25 amended— 


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1 (1) by striking section 166; and 

2 (2) by redesignating section 167 as section 166. 

3 (b) APPLICABILITY.—The amendments made by this 

4 section shall apply beginning with the 2019 crop year. 

5 TITLE II—ELIGIBILITY REQUIRE6 MENTS FOR FARM SUBSIDY 

7 PAYMENTS 

8 SEC. 201. ADJUSTED GROSS INCOME LIMITS FOR CROP IN9 SURANCE PREMIUM SUBSIDIES. 

10 Section 508(e) of the Federal Crop Insurance Act (7 

11 U.S.C. 1508(e)), as amended by section 101, is further 

12 amended by adding at the end the following new para13 graph: 

14 ‘‘(10) ADJUSTED GROSS INCOME LIMITATION.— 

15 A producer shall not be eligible to obtain premium 

16 assistance for a crop year under this subsection if 

17 the average adjusted gross income (as defined in 

18 section 1001D of the Food Security Act of 1985 (7 

19 U.S.C. 1308–3a)) of such producer exceeds 

20 $500,000 for the preceding crop year.’’. 

21 SEC. 202. ADJUSTED GROSS INCOME LIMITS FOR COM22 MODITY AND CONSERVATION PROGRAMS. 

23 Section 1001D(b)(1) of the Food Security Act of 

24 1985 (7 U.S.C. 1308–3a(b)(1)) is amended by striking 

25 ‘‘$900,000’’ and inserting ‘‘$500,000’’. 


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1 SEC. 203. PAYMENTS LIMITED TO ACTIVE FARMERS. 

2 Section 1001A(b) of the Food Security Act of 1985 

3 (7 U.S.C. 1308–1) is amended by adding the following 

4 new paragraph: 

5 ‘‘(3) LIMITATION.—With respect to a farming 

6 operation, no more than one person shall qualify as 

7 a farm manager actively engaged in farming for pur8 poses of receiving a payment described in subsection 

9 (b) or (c) of section 1001.’’. 

10 TITLE III—TARGET RATE OF RE11 TURN FOR INSURANCE COM12 PANIES 

13 SEC. 301. REDUCING TARGET RATE OF RETURN FOR INSUR14 ANCE COMPANIES. 

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

16 (7 U.S.C. 1508(k)(3)) is amended— 

17 (1) by striking ‘‘(3) SHARE OF RISK.—The’’ 

18 and inserting the following: 

19 ‘‘(3) RISK.— 

20 ‘‘(A) SHARE OF RISK.—The’’; and 

21 (2) by adding at the end the following: 

22 ‘‘(B) LIMITATION ON AVERAGE RATE OF

23 RETURN.—The target average rate of return for 

24 reinsured companies for the 2018 reinsurance 


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1 year and each subsequent reinsurance year shall 

2 be 12 percent of retained premiums.’’. 

Æ 


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