Specialty crop contracts get a reimbursement floor of 17 percent
What the document says“the rate of reimbursement to approved insurance providers and agents for administrative and operating expenses with respect to crop insurance contracts covering agricultural commodities described in section 101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) shall be equal to or greater than the percentage that is the greater of the following:”
The section adds a new paragraph (11) to section 508(k) of the Federal Crop Insurance Act setting the reimbursement rate for specialty crop contracts, from the 2026 reinsurance year, at whichever is greater of 17 percent of the premium used to define loss ratio and the rate that would otherwise apply under the Standard Reinsurance Agreement for that year.
What the document actually says“the rate of reimbursement to approved insurance providers and agents for administrative and operating expenses with respect to crop insurance contracts covering agricultural commodities described in section 101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) shall be equal to or greater than the percentage that is the greater of the following:”
The rate paid on specialty crop contracts gets a floor. It may not fall below whichever of two figures is bigger.
Specialty crops are fruits, vegetables, nuts and the like. One figure is 17 percent of premium. The other is the usual rate under the standard deal.
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