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) in-
troduced the following bill; which was referred to the Committee on Agri-
culture 
A BILL 
To reform the Federal Crop Insurance Act and reduce 
Federal spending on crop insurance. 
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 ‘‘Assisting Family 
Farmers through Insurance Reform Measures Act’’ or the 
‘‘AFFIRM Act’’. 
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SEC. 2. ADJUSTED GROSS INCOME AND PER PERSON LIMI-
TATIONS ON SHARE OF INSURANCE PRE-
MIUMS PAID BY CORPORATION. 
Section 508(e)(1) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(e)(1)) is amended— 
(1) by striking ‘‘For the purpose’’ and inserting 
the following: 
‘‘(A) PAYMENT AUTHORITY.—For the pur-
pose’’; and 
(2) by adding at the end the following new sub-
paragraphs: 
‘‘(B) ADJUSTED
GROSS
INCOME
LIMITA-
TION.—The Corporation shall not pay a part of 
the premium for additional coverage for any 
person or legal entity that has an average ad-
justed gross income (as defined in section 
1001D of the Food Security Act of 1985 (7 
U.S.C. 1308–3a)) in excess of $250,000. 
‘‘(C) PER PERSON LIMITATION.—The Cor-
poration shall not pay more than $40,000 to 
any person or legal entity for premiums under 
this section.’’. 
SEC. 3. CAP ON OVERALL RATE OF RETURN FOR CROP IN-
SURANCE PROVIDERS. 
Section 508(k)(3) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(k)(3)) is amended— 
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(1) by designating paragraph (3) as subpara-
graph (A) (and adjusting the margin two ems to the 
right); 
(2) by inserting before subparagraph (A) (as so 
designated) the following: 
‘‘(3) RISK.—’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) CAP
ON
OVERALL
RATE
OF
RE-
TURN.—The target rate of return for all the 
companies combined for the 2013 and subse-
quent reinsurance years shall be 12 percent of 
retained premium.’’. 
SEC. 4. CAP ON REIMBURSEMENTS FOR ADMINISTRATIVE 
AND OPERATING EXPENSES OF CROP INSUR-
ANCE PROVIDERS. 
Section 508(k)(4) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(k)(4)) is amended by adding at the end 
the following new subparagraph: 
‘‘(G) ADDITIONAL
CAP
ON
REIMBURSE-
MENTS.—Notwithstanding subparagraphs (A) 
through (F), total reimbursements for adminis-
trative and operating costs for the 2013 insur-
ance year for all types of policies and plans of 
insurance shall not exceed $900,000,000. For 
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each subsequent insurance year, the dollar 
amount in effect pursuant to the preceding sen-
tence shall be increased by the same inflation 
factor as established for the administrative and 
operating costs cap in the 2011 Standard Rein-
surance Agreement.’’. 
SEC. 5. BUDGET LIMITATIONS ON RENEGOTIATION OF 
STANDARD REINSURANCE AGREEMENT. 
Section 508(k)(8) of the Federal Crop Insurance Act 
of 1938 (7 U.S.C. 1508(k)(8)) is amended by adding at 
the end the following new subparagraph: 
‘‘(F) REDUCTION IN CORPORATION OBLI-
GATIONS.—The Board shall ensure that any 
Standard Reinsurance Agreement negotiated 
under subparagraph (A)(ii), when compared to 
the immediately preceding Standard Reinsur-
ance Agreement, shall reduce, to the maximum 
extent practicable, the obligations of the Cor-
poration under subsections (e)(2) or (k)(4) or 
section 523.’’. 
SEC. 6. CROP INSURANCE PREMIUM SUBSIDIES DISCLO-
SURE IN THE PUBLIC INTEREST. 
Section 502(c)(2) of the Federal Crop Insurance Act 
(7 U.S.C. 1502(c)(2)) is amended— 
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(1) by redesignating subparagraphs (A) and 
(B) as subparagraphs (C) and (D) respectively; and 
(2) by inserting before subparagraph (C) (as so 
redesignated) the following: 
‘‘(A) DISCLOSURE IN THE PUBLIC INTER-
EST.—Notwithstanding paragraph (1) or any 
other provision of law, except as provided in 
subparagraph (B), the Secretary shall on an 
annual basis make available to the public— 
‘‘(i)(I) the name of each individual or 
entity who obtained a federally subsidized 
crop insurance, livestock, or forage policy 
or plan of insurance during the previous 
fiscal year; 
‘‘(II) the amount of premium subsidy 
received by the individual or entity from 
the Corporation; and 
‘‘(III) the amount of any Federal por-
tion of indemnities paid in the event of a 
loss during that fiscal year for each policy 
associated with that individual or entity; 
and 
‘‘(ii) for each private insurance pro-
vider, by name— 
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‘‘(I) 
the 
underwriting 
gains 
earned through participation in the 
federally subsidized crop insurance 
program; and 
‘‘(II) the amount paid under this 
subtitle for— 
‘‘(aa) administrative and op-
erating expenses; 
‘‘(bb) any Federal portion of 
indemnities and reinsurance; and 
‘‘(cc) any other purpose. 
‘‘(B) LIMITATION.—The Secretary shall 
not disclose information pertaining to individ-
uals and entities covered by a catastrophic risk 
protection plan offered under section 508(b).’’. 
Æ 
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