I 
118TH CONGRESS 
1ST SESSION H. R. 4804 
To require the Federal Crop Insurance Corporation to revise the terms 
of the Standard Reinsurance Agreement and the Livestock Price Reinsur-
ance Agreement, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 20, 2023 
Ms. SALINAS (for herself and Mr. BLUMENAUER) introduced the following bill; 
which was referred to the Committee on Agriculture 
A BILL 
To require the Federal Crop Insurance Corporation to revise 
the terms of the Standard Reinsurance Agreement and 
the Livestock Price Reinsurance Agreement, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Insuring Fairness for 
Family Farmers Act of 2023’’. 
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SEC. 2. TERMS FOR STANDARD REINSURANCE AGREEMENT 
AND 
LIVESTOCK 
PRICE 
REINSURANCE 
AGREEMENT. 
(a) DEFINITIONS.—In this section: 
(1) A&O SUBSIDY.—The term ‘‘A&O subsidy’’ 
means the subsidy for administrative and operating 
expenses paid by the Corporation on behalf of the 
policyholder to the applicable approved insurance 
provider for eligible crop insurance contracts for ad-
ditional coverage levels, in accordance with section 
508(k)(4) of the Federal Crop Insurance Act (7 
U.S.C. 1508(k)(4)). 
(2) CORPORATION.—The term ‘‘Corporation’’ 
has the meaning given the term in section 502(b) of 
the Federal Crop Insurance Act (7 U.S.C. 1502(b)). 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(b) RENEGOTIATION OF STANDARD REINSURANCE 
AGREEMENT AND THE LIVESTOCK PRICE REINSURANCE 
AGREEMENT.— 
(1) IN GENERAL.—The Corporation shall revise 
the financial terms and conditions of the Standard 
Reinsurance Agreement and the Livestock Price Re-
insurance Agreement to modify the calculation of 
A&O subsidies— 
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(A) to improve the equity of the distribu-
tion of payments to crop insurance agents 
across farm sizes; and 
(B) to improve the equity of policies sold 
across farm sizes. 
(2) TERMS.—The terms that shall be included 
in the revised Standard Reinsurance Agreement and 
Livestock Price Reinsurance Agreement under para-
graph (1) are the following: 
(A) Subject to paragraph (3), there shall 
be a fixed minimum amount and maximum 
amount for the amount of A&O subsidy that 
may be paid per insurance policyholder, and the 
maximum amount shall not be more than 400 
percent greater than the minimum amount. 
(B) The amount of an A&O subsidy, with-
in the minimum and maximum amounts estab-
lished under subparagraph (A), shall cor-
respond to the complexity, for a crop insurance 
agent, of issuing 1 or more insurance plans for 
a specific policyholder— 
(i) taking into account factors includ-
ing the number of crops being insured by 
the policyholder, the type of insurance poli-
cies being issued, the number of insurance 
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policies or endorsements being issued, and 
whether the policyholder has had crop in-
surance previously; but 
(ii) not taking into account the insur-
ance policy premium. 
(C)(i) A bonus of 10 percent of the appli-
cable A&O subsidy amount shall be added to 
the total amount of the applicable A&O subsidy, 
for each condition described in clause (ii) that 
is satisfied. 
(ii) The conditions referred to in clause (i) 
are the following: 
(I) The applicable farm operates less 
than 180 acres. 
(II) The insurance policy insures at 
least 1 specialty crop that is not eligible 
for a crop-specific insurance policy in the 
county in which the specialty crop is 
grown. 
(III) The applicable farm is owned by 
a farmer who has never purchased crop in-
surance before. 
(3) EXCEPTIONS TO MINIMUM AND MAXIMUM 
AMOUNTS.— 
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(A) MINIMUM
FOR
STANDARD
REINSUR-
ANCE AGREEMENT.—In the case of the Stand-
ard Reinsurance Agreement, the Corporation 
may reduce the minimum amount of an A&O 
subsidy established under paragraph (2)(A) as 
needed to comply with section III(a)(2)(G) of 
the 2024 Standard Reinsurance Agreement. 
(B) MAXIMUM.—An A&O subsidy amount 
may exceed the maximum amount established 
under paragraph (2)(A) if a bonus or multiple 
bonuses under paragraph (2)(C) are applied to 
the A&O subsidy amount. 
(4) BUDGET.—The Corporation shall ensure 
that the Standard Reinsurance Agreement and the 
Livestock Price Reinsurance Agreement renegotiated 
under paragraph (1) shall each, to the maximum ex-
tent practicable, be estimated as budget neutral with 
respect to the total amount of A&O subsidy pay-
ments as compared to the total amount of such pay-
ments estimated to be made under the immediately 
preceding Standard Reinsurance Agreement or Live-
stock Price Reinsurance agreement, as applicable, if 
that Agreement were extended over the same period 
of time. 
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(5) TRACKING
DATA.—The Administrator of 
the Risk Management Agency may establish a pro-
gram that maintains a list of farmers that have pur-
chased crop insurance previously to share with ap-
proved insurance providers for purposes of imple-
menting the bonus described in paragraph (2)(C). 
(c) PUBLIC DATA.— 
(1) GUIDANCE.—The Corporation shall develop 
and publish the methodology used to determine the 
amount of an A&O subsidy, within the minimum 
and maximum amounts established pursuant to sub-
section (b)(2)(A), based on the complexity of issuing 
an insurance policy for 1 or more farms of a policy-
holder. 
(2) A&O SUBSIDY DATA.— 
(A) IN
GENERAL.—The Secretary shall 
make publicly available, on an annual basis, 
A&O subsidy data regarding— 
(i) the total amount of A&O subsidy 
payments, organized by State, commodity, 
insurance plan type, and practice type; 
(ii) the average and median A&O sub-
sidy payments per insured acre, organized 
by State, commodity, insurance plan type, 
and practice type; 
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(iii) the total amount of compensation 
paid by approved insurance providers to 
crop insurance agents, organized by State, 
commodity, insurance plan type, and prac-
tice type; 
(iv) the average and median com-
pensation per insured acre paid by ap-
proved insurance providers to crop insur-
ance agents, organized by State, com-
modity, insurance plan type, and practice 
type; 
(v) the average and median A&O sub-
sidy payment per policyholder, organized 
by State, commodity, insurance plan type, 
and practice type; 
(vi) the average and median A&O sub-
sidy payment per insured acre, organized 
by State, commodity, insurance plan type, 
and practice type; 
(vii) whether and how much total ad-
ditional A&O subsidies were paid due to 
the SnapBack program or 1 or more bo-
nuses described in subsection (b)(2)(C), or-
ganized by State, insurance plan type, and 
commodity; and 
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(viii) whether A&O subsidies were 
subject to the Standard Reinsurance 
Agreement or Livestock Price Reinsurance 
Agreement, as applicable, cap for A&O 
subsidies, and if so, what the total amount 
of A&O subsidy amounts would have been 
without the cap, organized by State, insur-
ance plan type, and commodity. 
(B) CONFIDENTIALITY.—The data made 
publicly available under subparagraph (A) shall 
be aggregated and anonymized to protect the 
privacy of individuals and approved insurance 
providers. 
(d) DATA
FROM
APPROVED
INSURANCE
PRO-
VIDERS.—An approved insurance provider shall annually 
submit data on agent compensation, by individual agent, 
agency, and policy, to the Secretary and the Comptroller 
General of the United States on request. 
(e) STUDY.—The Administrator of the Risk Manage-
ment Agency shall use data mining and other available 
information— 
(1) to analyze the impact of the changes to 
A&O subsidy amounts required under this section 
on— 
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(A) the distribution of A&O subsidy 
amounts across policies and farming operations; 
and 
(B) agent and producer choices on how to 
insure crops; and 
(2) to assess whether changes in the number of 
policies per farming operation and other factors indi-
cate attempts to undermine the goal of this section 
to improve the equity of the distribution of A&O 
subsidy amounts. 
(f) REGULATIONS.—The Administrator of the Risk 
Management Agency shall promulgate regulations, if need-
ed, to limit the attempts described in subsection (e)(2). 
SEC. 3. GAO REPORT. 
Not later than 1 year after the date of enactment 
of this Act, the Comptroller General of the United States 
shall make publicly available a report that— 
(1) assesses the structure of the Federal crop 
insurance program; and 
(2) provides recommendations on how to reform 
that program to best reflect generally accepted in-
surance and market principles. 
Æ 
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