I 

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. 

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’’. 

7 SEC. 2. CROP INSURANCE PREMIUM SUBSIDIES DISCLO8 SURE IN THE PUBLIC INTEREST. 

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

10 (7 U.S.C. 1502(c)(2)) is amended— 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
2 

•HR 5698 IH

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 that obtained a federally subsidized 

12 crop insurance, livestock, or forage policy 

13 or plan of insurance during the previous 

14 reinsurance 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 for that reinsurance year for each pol21 icy associated with that individual or enti22 ty; and 

23 ‘‘(ii) for each private insurance pro24 vider, a description by the name of the pri25 vate insurance provider of— 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
3 

•HR 5698 IH

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 under subparagraph (A) informa14 tion relating to individuals and entities covered 

15 by a catastrophic risk protection plan offered 

16 under section 508(b).’’. 

17 SEC. 3. ADJUSTED GROSS INCOME AND PER PERSON LIMI18 TATIONS ON SHARE OF INSURANCE PRE19 MIUMS PAID BY CORPORATION. 

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

21 (7 U.S.C. 1508(e)(1)) is amended— 

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

23 the following: 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
4 

•HR 5698 IH

1 ‘‘(A) PAYMENT AUTHORITY.—Subject to 

2 subparagraphs (B) and (C), for the purpose’’; 

3 and 

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

5 ‘‘(B) ADJUSTED GROSS INCOME LIMITA6 TION.—The Corporation shall not pay a part of 

7 the premium for additional coverage for any 

8 person or legal entity that has an average ad9 justed gross income (as defined in section 

10 1001D(a) of the Food Security Act of 1985 (7 

11 U.S.C. 1308–3a(a))) that is greater than 

12 $250,000. 

13 ‘‘(C) PER PERSON LIMITATION.—The Cor14 poration shall not pay more than $125,000 for 

15 any reinsurance year to any person or legal en16 tity for premiums under this section.’’. 

17 SEC. 4. PROHIBITION ON PREMIUM SUBSIDY FOR HARVEST 

18 PRICE POLICIES. 

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

20 U.S.C. 1508(e)) is amended by adding at the end the fol21 lowing: 

22 ‘‘(9) PROHIBITION ON PREMIUM SUBSIDY FOR

23 HARVEST PRICE POLICIES.—Notwithstanding any 

24 other provision of law, beginning with the 2023 rein25 surance year, the Corporation shall not pay any 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
5 

•HR 5698 IH

1 amount of premium subsidy in the case of a policy 

2 or plan of insurance that is based on the actual mar3 ket price of an agricultural commodity on the date 

4 of harvest.’’. 

5 SEC. 5. PROHIBITION ON PREMIUM SUBSIDY FOR PRO6 DUCERS NOT ENGAGED IN ACTIVE PERSONAL 

7 LABOR OR ACTIVE PERSONAL MANAGEMENT. 

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

9 U.S.C. 1508(e)), as amended by section 4, is further 

10 amended by adding at the end the following: 

11 ‘‘(10) PROHIBITION ON PREMIUM SUBSIDY FOR

12 PRODUCERS NOT ENGAGED IN ACTIVE PERSONAL

13 LABOR ACTIVE PERSONAL MANAGEMENT.— 

14 ‘‘(A) IN GENERAL.—Notwithstanding any 

15 other provision of law, beginning with the 2023 

16 reinsurance year, the Corporation shall not pay 

17 any amount of premium subsidy to a producer 

18 that is not engaged in active personal labor or 

19 active personal management with respect to the 

20 farming operation pursuant to which such sub21 sidy would apply. 

22 ‘‘(B) DEFINITIONS.—In this paragraph: 

23 ‘‘(i) ACTIVE PERSONAL LABOR.—The 

24 term ‘active personal labor’ means, with 

25 respect to a producer, physical labor and 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
6 

•HR 5698 IH

1 activities personally performed by the pro2 ducer on a farming operation— 

3 ‘‘(I) that— 

4 ‘‘(aa) are necessary to such 

5 farming operation, including land 

6 preparation, planting, cultivating, 

7 harvesting and marketing of agri8 cultural commodities; 

9 ‘‘(bb) establish or maintain 

10 conserving cover crops or con11 serving use acreages; or 

12 ‘‘(cc) are required for live13 stock operations; and 

14 ‘‘(II) for, with respect to a crop 

15 year, a period of at least— 

16 ‘‘(aa) 1,000 hours; or 

17 ‘‘(bb) 50 percent of the total 

18 hours that would be required to 

19 conduct a farming operation 

20 comparable in size to the pro21 ducer’s share in the farming op22 eration, as determined by the 

23 Corporation. 

24 ‘‘(ii) ACTIVE PERSONAL MANAGE25 MENT.—The term ‘active personal manageVerDate Sep 11 2014 22:58 Sep 27, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5698.IH H5698

kjohnson on DSK7ZCZBW3PROD with $$_JOB
7 

•HR 5698 IH

1 ment’ means management activities per2 sonally performed on a farming oper3 ation— 

4 ‘‘(I) by a person with a direct or 

5 indirect ownership interest in that 

6 farming operation; 

7 ‘‘(II) on a regular continuous, 

8 and substantial basis; and 

9 ‘‘(III) for, with respect to a crop 

10 year, a period of at least— 

11 ‘‘(aa) 500 hours; or 

12 ‘‘(bb) 50 percent of the total 

13 management hours required for 

14 that farming operation on an an15 nual basis, as determined by the 

16 Corporation.’’. 

17 SEC. 6. MAXIMUM AMOUNT OF ADDITIONAL PREVENTED 

18 PLANTING COVERAGE. 

19 Section 508(h)(6) of the Agricultural Adjustment Act 

20 of 1938 (7 U.S.C. 1508(h)(6)) is amended by adding at 

21 the end the following: 

22 ‘‘(D) MAXIMUM AMOUNT OF COVERAGE.— 

23 A crop loss of a producer may only be covered 

24 by the additional prevented planting coverage if, 

25 during the 3-year period preceding such loss, 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
8 

•HR 5698 IH

1 such producer had less than or equal to 2 crop 

2 losses covered by the additional prevented 

3 planting coverage.’’. 

4 SEC. 7. PREMIUM REDUCTION. 

5 Section 508(i) of the Agricultural Adjustment Act of 

6 1938 (7 U.S.C. 1508(i)) is amended by adding at the end 

7 the following: 

8 ‘‘(5) PREMIUM REDUCTION.—If the Corpora9 tion makes a determination that a producer has re10 ceived 3 or more indemnities under a plan of insur11 ance for the same type of loss during a 4-year pe12 riod, the Corporation shall, with respect to such pro13 ducer, reduce the premium rate of such plan by 15 

14 percent (except in no case may such premium rate 

15 be less than zero).’’. 

16 SEC. 8. CAP ON OVERALL RATE OF RETURN FOR CROP IN17 SURANCE PROVIDERS. 

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

19 (7 U.S.C. 1508(k)(3)) is amended— 

20 (1) by striking the paragraph designation and 

21 heading and all that follows through ‘‘The’’ and in22 serting the following: 

23 ‘‘(3) RISK.— 

24 ‘‘(A) SHARE OF RISK.—The’’; and 

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


kjohnson on DSK7ZCZBW3PROD with $$_JOB
9 

•HR 5698 IH

1 ‘‘(B) LIMITATION ON AVERAGE RATE OF

2 RETURN.—The target average rate of return for 

3 reinsured companies for the 2023 reinsurance 

4 year and each subsequent reinsurance year shall 

5 be 8.9 percent of retained premiums.’’. 

6 SEC. 9. CAP ON REIMBURSEMENTS FOR ADMINISTRATIVE 

7 AND OPERATING EXPENSES OF CROP INSUR8 ANCE PROVIDERS. 

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

10 (7 U.S.C. 1508(k)(4)) is amended by adding at the end 

11 the following: 

12 ‘‘(G) ADDITIONAL CAP ON REIMBURSE13 MENTS.— 

14 ‘‘(i) IN GENERAL.—Notwithstanding 

15 subparagraphs (A) through (F), the total 

16 amount of reimbursements for administra17 tive and operating costs for the 2023 rein18 surance year for all types of policies and 

19 plans of insurance shall not exceed 

20 $900,000,000. 

21 ‘‘(ii) ADJUSTMENT.—For the 2024 re22 insurance year and each subsequent rein23 surance year, the dollar amount in effect 

24 pursuant to clause (i) shall be increased by 

25 the inflation factor established for the adVerDate Sep 11 2014 22:58 Sep 27, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H5698.IH H5698

kjohnson on DSK7ZCZBW3PROD with $$_JOB
10 

•HR 5698 IH

1 ministrative and operating costs limitation 

2 in the 2011 Standard Reinsurance Agree3 ment.’’. 

4 SEC. 10. RENEGOTIATION OF STANDARD REINSURANCE 

5 AGREEMENT. 

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

7 (7 U.S.C. 1508(k)(8)) is amended by striking subpara8 graph (F). 

Æ 


kjohnson on DSK7ZCZBW3PROD with $$_JOB