This part pays crop insurers more for their running costs. From the 2026 reinsurance year insurers in high-loss states get an extra 6 percent. Specialty crop contracts get a floor of 17 percent. All reimbursements are raised each year for inflation.
The document says “shall”Who acts: Federal Crop Insurance CorporationHow: statuteSec. 10503 in the PDF
What the document says
“Beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, in addition to the terms and conditions of the Standard Reinsurance Agreement, to cover additional expenses for loss adjustment procedures, the Corporation shall pay an additional administrative and operating expense subsidy to approved insurance providers for eligible contracts.”
The section adds a new paragraph (10) to section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) requiring the Corporation, from the 2026 reinsurance year on and on top of the Standard Reinsurance Agreement, to pay approved insurance providers an additional administrative and operating expense subsidy on eligible contracts, to cover extra costs of loss adjustment.
What the document actually says
“Beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, in addition to the terms and conditions of the Standard Reinsurance Agreement, to cover additional expenses for loss adjustment procedures, the Corporation shall pay an additional administrative and operating expense subsidy to approved insurance providers for eligible contracts.”
That sentence, in plain words
From the 2026 reinsurance year insurers get an extra payment. It covers the cost of settling claims. It comes on top of the usual deal.
What this is about
Loss adjustment is the work of checking and settling a claim. Only some contracts count. The next rules say which.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Federal Crop Insurance CorporationHow: statuteSec. 10503 in the PDF
What the document says
“the payment to an approved insurance provider required under subparagraph (A) shall be the amount equal to 6 percent of the net book premium.”
The section sets the additional subsidy on an eligible contract at 6 percent of the net book premium.
What the document actually says
“the payment to an approved insurance provider required under subparagraph (A) shall be the amount equal to 6 percent of the net book premium.”
That sentence, in plain words
The extra payment is worked out from the premium. It comes to 6 percent of the net book premium.
What this is about
Net book premium is the premium the insurer has on its books. A bigger book means a bigger payment. The rate is fixed at 6 percent.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“The term `eligible State' means a State in which, with respect to an insurance year, the loss ratio for eligible contracts is greater than 120 percent of the total net book premium written by all approved insurance providers.”
The section defines an eligible State as one where the loss ratio for eligible contracts in an insurance year runs above 120 percent of the total net book premium written by all approved insurance providers. An eligible contract is a crop insurance contract entered into by an approved insurance provider in an eligible State, and does not include catastrophic risk protection under subsection (b), an area-based or similar plan as the Corporation determines, or a policy on which the provider incurs no loss adjustment expenses.
What the document actually says
“The term `eligible State' means a State in which, with respect to an insurance year, the loss ratio for eligible contracts is greater than 120 percent of the total net book premium written by all approved insurance providers.”
That sentence, in plain words
A state counts if claims there run high. Claims must top 120 percent of the premium taken in. That is measured across all insurers.
What this is about
A loss ratio compares claims paid to premium taken. Above 120 percent means claims beat premium by a fifth. Three kinds of contract are left out.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Federal Crop Insurance CorporationHow: statuteSec. 10503 in the PDF
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:”
That sentence, in plain words
The rate paid on specialty crop contracts gets a floor. It may not fall below whichever of two figures is bigger.
What this is about
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.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Federal Crop Insurance CorporationHow: statuteSec. 10503 in the PDF
What the document says
“the Corporation shall not reduce, with respect to any reinsurance year, the amount or the rate of reimbursement to approved insurance providers and agents under the Standard Reinsurance Agreement described in clause (ii) of such subparagraph for administrative and operating expenses”
The section bars the Corporation, in carrying out the specialty crop floor, from cutting the amount or rate of reimbursement in any reinsurance year for contracts covering crops that the floor does not reach. The section also provides that these requirements and adjustments are not a renegotiation under paragraph (8)(A).
What the document actually says
“the Corporation shall not reduce, with respect to any reinsurance year, the amount or the rate of reimbursement to approved insurance providers and agents under the Standard Reinsurance Agreement described in clause (ii) of such subparagraph for administrative and operating expenses”
That sentence, in plain words
The Corporation may not cut what it pays on other contracts. That holds in any reinsurance year. It covers both the amount and the rate.
What this is about
The floor for specialty crops must not be paid for by other growers. Rates on other crops stay where they are. The change does not count as reopening the deal.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Federal Crop Insurance CorporationHow: statuteSec. 10503 in the PDF
What the document says
“beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, the Corporation shall increase the total administrative and operating expense reimbursements otherwise required under the Standard Reinsurance Agreement in effect for the reinsurance year in order to account for inflation”
The section adds a new paragraph (12) to section 508(k) of the Federal Crop Insurance Act requiring the Corporation, from the 2026 reinsurance year, to raise total administrative and operating expense reimbursements for inflation, in a manner consistent with the increases given for the 2011 through 2015 reinsurance years under the enclosure to Risk Management Agency Bulletin numbered MGR-10-007 dated June 30, 2010. The increase applies to all contracts covering crops that were subject to an increase in those years, and is not a renegotiation under paragraph (8)(A).
What the document actually says
“beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, the Corporation shall increase the total administrative and operating expense reimbursements otherwise required under the Standard Reinsurance Agreement in effect for the reinsurance year in order to account for inflation”
That sentence, in plain words
From the 2026 reinsurance year the Corporation must raise what it pays. The rise is there to keep up with inflation.
What this is about
It follows the way rises were given from 2011 to 2015. Those were set out in a 2010 agency bulletin. That bulletin is not indexed here.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Federal Crop Insurance CorporationHow: statuteSec. 10503 in the PDF
What the document says
“The increase under subparagraph (A) for the 2026 reinsurance year shall not exceed the percentage change for the preceding reinsurance year included in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.”
The section caps the first inflation increase, for the 2026 reinsurance year, at the percentage change for the preceding reinsurance year in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.
What the document actually says
“The increase under subparagraph (A) for the 2026 reinsurance year shall not exceed the percentage change for the preceding reinsurance year included in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.”
That sentence, in plain words
The rise for the 2026 year has a ceiling. It may not top the change in a price index. That index is kept by the labor agency.
What this is about
The index tracks what city shoppers pay. The change from the year before is used. Later years are not capped this way.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: the new additional subsidy and the years it starts, the 6 percent payment, the definitions of an eligible contract and an eligible State, the specialty crop reimbursement floor, the bar on cutting other reimbursements, the inflation adjustment, and the cap on the first year of that adjustment.
The two administration clauses providing that these changes are not a renegotiation under paragraph (8)(A) are carried in summaries rather than recorded as their own proposals.
The section works by adding paragraphs to section 508(k) of the Federal Crop Insurance Act, which is not indexed here. The Standard Reinsurance Agreement, the Specialty Crops Competitiveness Act of 2004 and Risk Management Agency Bulletin MGR-10-007 are also not indexed here.
