To amend the Federal Crop Insurance Act to establish a minimum rate of reimbursement for administrative and operating expenses with respect to crop insurance contracts covering specialty crops and to restore the annual inflation adjustment with respect to the general reimbursement rate for administrative and operating expenses.
This bill amends federal crop insurance law to ensure insurance companies receive adequate reimbursement for their administrative costs when selling specialty crop insurance. Specialty crops include fruits, vegetables, and other crops covered under the 2004 Specialty Crops Competitiveness Act. The legislation establishes a minimum reimbursement rate of 17 percent of premiums for specialty crop insurance, beginning with the 2022 reinsurance year and continuing forward. Additionally, the bill restores automatic annual inflation adjustments to the general administrative expense reimbursement rates for all crop insurance starting in 2024, calculated using the Consumer Price Index to reflect rising costs. The changes are intended to help insurance providers and agents continue offering crop insurance products, particularly for specialty crop farmers.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.