President Trump's Farm Bill Reforms Act of 2018

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. Short title; table of contents (a) Short title This Act may be cited as the President Trump's Farm Bill Reforms Act of 2018 (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Title I—Reducing Farm Subsidy Payments 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. I Reducing Farm Subsidy Payments 101. Reduction of premium subsidies Section 508(e) of the Federal Crop Insurance Act ( 7 U.S.C. 1508(e) (1) in paragraph (2)— (A) in subparagraph (B)(i), by striking 67 percent 52 percent (B) in subparagraph (C)(i), by striking 64 percent 49 percent (C) in subparagraph (D)(i), by striking 59 percent 44 percent (D) in subparagraph (E)(i), by striking 55 percent 40 percent (E) in subparagraph (F)(i), by striking 48 percent 33 percent (F) in subparagraph (G)(i), by striking 38 percent 23 percent (G) in subparagraph (H)(i), by striking 65 percent 50 percent (2) in paragraph (6)— (A) in subparagraph (A)(i), by striking 59 percent 44 percent (B) in subparagraph (B)(i), by striking 55 percent 40 percent (C) in subparagraph (C)(i), by striking 49 percent 34 percent (D) in subparagraph (D)(i), by striking 44 percent 29 percent (3) in paragraph (7)— (A) in subparagraph (A)(i), by striking 59 percent 44 percent (B) in subparagraph (B)(i), by striking 55 percent 40 percent (C) in subparagraph (C)(i), by striking 51 percent 36 percent 102. Reduction of stacked income protection plan for producers of upland cotton Section 508B(d)(1) of the Agricultural Adjustment Act of 1938 ( 7 U.S.C. 1508b(d)(1) 80 percent 65 percent 103. Elimination of separate payment limitation for peanuts (a) Uniform payment limitations for covered commodities (1) In general Section 1001(b) of the Food Security Act of 1985 ( 7 U.S.C. 1308(b) (A) in the subsection heading by striking (OTHER THAN PEANUTS) (B) by striking (other than for peanuts) (2) Payment limitation for peanuts Section 1001(c) of the Food Security Act of 1985 ( 7 U.S.C. 1308(c) (b) Conforming amendments Title X of the Food Security Act of 1985 is amended— (1) in section 1001 ( 7 U.S.C. 1308 (A) by striking subsections (b) and (c) subsection (b) (B) in subsection (f)(2), by striking Subsections (b) and (c) Subsection (b) (C) by striking subsection (b) or (c) subsection (b) (D) in subsection (f)(5)(B), by striking subsection (b), (c), or (d) subsection (b) or (d) (E) in subsection (f)(6)(B), by striking subsections (b), (c), and (d) subsections (b) and (d) (2) in section 1001A ( 7 U.S.C. 1308–1 (A) in subsection (a), by striking subsections (b) and (c) subsection (b) (B) in subsection (b)(1), by striking subsection (b) or (c) subsection (b) (3) in section 1001B(a) ( 7 U.S.C. 1308–2(a) subsections (b) and (c) subsection (b) (c) Applicability The amendments made by this section shall apply beginning with the 2019 crop year. 104. Terminating use of commodity certificates to pay off marketing assistance loans (a) Terminating use of commodity certificates Subtitle G of the Federal Agriculture Improvement and Reform Act of 1996 ( 7 U.S.C. 7286(c)(3) (1) by striking section 166; and (2) by redesignating section 167 as section 166. (b) Applicability The amendments made by this section shall apply beginning with the 2019 crop year. II Eligibility Requirements for Farm Subsidy Payments 201. Adjusted gross income limits for crop insurance premium subsidies Section 508(e) of the Federal Crop Insurance Act ( 7 U.S.C. 1508(e) (10) Adjusted gross income limitation A producer shall not be eligible to obtain premium assistance for a crop year under this subsection if the average adjusted gross income (as defined in section 1001D of the Food Security Act of 1985 ( 7 U.S.C. 1308–3a . 202. Adjusted gross income limits for commodity and conservation programs Section 1001D(b)(1) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)(1)) is amended by striking $900,000 $500,000 203. Payments limited to active farmers Section 1001A(b) of the Food Security Act of 1985 ( 7 U.S.C. 1308–1 (3) Limitation With respect to a farming operation, no more than one person shall qualify as a farm manager actively engaged in farming for purposes of receiving a payment described in subsection (b) or (c) of section 1001. . III Target Rate of Return for Insurance Companies 301. Reducing target rate of return for insurance companies Section 508(k)(3) of the Federal Crop Insurance Act ( 7 U.S.C. 1508(k)(3) (1) by striking (3) Share of risk (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 2018 reinsurance year and each subsequent reinsurance year shall be 12 percent of retained premiums. .

Summary: President Trump's Farm Bill Reforms Act of 2018 This bill modifies several Department of Agriculture (USDA) programs to reduce farm subsidies and revise eligibility requirements. The bill includes provisions that: reduce crop insurance premium subsidies; eliminate the separate payment limitation for peanuts; terminate the use of commodity certificates to pay off marketing assistance loans; eliminate crop insurance premium subsidies and payments under conservation and commodity programs for farms with annual adjusted gross incomes that exceed $500,000; prohibit more than one person in a farming operation from qualifying as a farm manager actively engaged in farming for the purposes of receiving payments under USDA commodity programs; and limit the average rate of return for private insurance companies participating in the Federal Crop Insurance Program to 12% of retained premiums.