I 
115TH CONGRESS 
1ST SESSION H. R. 2332 
To reform the Federal Crop Insurance Act and reduce Federal spending 
on crop insurance. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 3, 2017 
Mr. KIND (for himself and Mr. SENSENBRENNER) introduced the following 
bill; which was referred to the Committee on Agriculture 
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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Assisting Family Farmers through Insurance Reform 
Measures Act’’ or the ‘‘AFFIRM Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Adjusted gross income and per person limitations on share of insurance 
premiums paid by Corporation. 
Sec. 3. Cap on reimbursements for administrative and operating expenses of 
crop insurance providers. 
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Sec. 4. Renegotiation of Standard Reinsurance Agreement. 
Sec. 5. Cap on overall rate of return for crop insurance providers. 
Sec. 6. Prohibition on premium subsidy for harvest price policies. 
Sec. 7. Crop insurance premium subsidies disclosure in the public interest. 
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.—Subject to 
subparagraphs (B) and (C), for the purpose’’; 
and 
(2) by adding at the end the following: 
‘‘(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(a) of the Food Security Act of 1985 (7 
U.S.C. 1308–3a(a))) that is greater than 
$250,000. 
‘‘(C) PER PERSON LIMITATION.—The Cor-
poration shall not pay more than $40,000 for 
any reinsurance year to any person or legal en-
tity for premiums under this section.’’. 
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SEC. 3. 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: 
‘‘(G) ADDITIONAL
CAP
ON
REIMBURSE-
MENTS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraphs (A) through (F), the total 
amount of reimbursements for administra-
tive and operating costs for the 2018 rein-
surance year for all types of policies and 
plans of insurance shall not exceed 
$900,000,000. 
‘‘(ii) ADJUSTMENT.—For the 2019 re-
insurance year and each subsequent rein-
surance year, the dollar amount in effect 
pursuant to clause (i) shall be increased by 
the inflation factor established for the ad-
ministrative and operating costs limitation 
in the 2011 Standard Reinsurance Agree-
ment.’’. 
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SEC. 4. RENEGOTIATION OF STANDARD REINSURANCE 
AGREEMENT. 
Section 508(k)(8) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(k)(8)) is amended by striking subpara-
graph (F). 
SEC. 5. 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— 
(1) by striking ‘‘(3) SHARE OF RISK.—The’’ 
and inserting the following: 
‘‘(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 8.9 percent of retained premiums.’’. 
SEC. 6. PROHIBITION ON PREMIUM SUBSIDY FOR HARVEST 
PRICE POLICIES. 
Section 508(e) of the Federal Crop Insurance Act (7 
U.S.C. 1508(e)) is amended by adding at the end the fol-
lowing: 
‘‘(9) PROHIBITION ON PREMIUM SUBSIDY FOR 
HARVEST
PRICE
POLICIES.—Notwithstanding any 
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other provision of law, beginning with the 2018 rein-
surance year, the Corporation shall not pay any 
amount of premium subsidy in the case of a policy 
or plan of insurance that is based on the actual mar-
ket price of an agricultural commodity on the date 
of harvest.’’. 
SEC. 7. 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— 
(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 that obtained a federally subsidized 
crop insurance, livestock, or forage policy 
or plan of insurance during the previous 
reinsurance year; 
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‘‘(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 for that reinsurance year for each pol-
icy associated with that individual or enti-
ty; and 
‘‘(ii) for each private insurance pro-
vider, a description by the name of the pri-
vate insurance provider of— 
‘‘(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 under subparagraph (A) informa-
tion relating to individuals and entities covered 
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