SEC. 10501. Beginning farmer and rancher benefit.
(a) Definitions.—
(1) IN GENERAL.—Section 502(b)(3) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)(3)) is amended by striking “5” and inserting “10”.
(2) CONFORMING AMENDMENT.—Section 522(c)(7) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)(7)) is amended by striking subparagraph (F).
(b) Increase in assistance.—Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the following:
“(9) ADDITIONAL SUPPORT.—
“(A) IN GENERAL.—In addition to any other provision of this subsection (except paragraph (2)(A)) regarding payment of a portion of premiums, a beginning farmer or rancher shall receive additional premium assistance that is the number of percentage points specified in subparagraph (B) greater than the premium assistance that would otherwise be available for the applicable policy, plan of insurance, and coverage level selected by the beginning farmer or rancher.
“(B) PERCENTAGE POINTS ADJUSTMENTS.—The percentage points referred to in subparagraph (A) are the following:
“(i) For each of the first and second reinsurance years that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 5 percentage points.
“(ii) For the third reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 3 percentage points.
“(iii) For the fourth reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 1 percentage point.”.
SEC. 10502. Area-based crop insurance coverage and affordability.
(a) Coverage level.—Section 508(c)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(4)) is amended—
(1) in subparagraph (A), by striking clause (ii) and inserting the following:
“(ii) may be purchased at any level not to exceed—
“(I) in the case of the individual yield or revenue coverage, 85 percent;
“(II) in the case of individual yield or revenue coverage aggregated across multiple commodities, 90 percent; and
“(III) in the case of area yield or revenue coverage (as determined by the Corporation), 95 percent.”; and
(2) in subparagraph (C)—
(A) in clause (ii), by striking “14” and inserting “10”; and
(B) in clause (iii)(I), by striking “86” and inserting “90”.
(b) Premium subsidy.—Section 508(e)(2)(H)(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)(H)(i)) is amended by striking “65” and inserting “80”.
SEC. 10503. Administrative and operating expense adjustments.
Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended by adding at the end the following:
“(10) ADDITIONAL EXPENSES.—
“(A) IN GENERAL.—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.
“(B) PAYMENT AMOUNT.—In the case of an eligible contract, the payment to an approved insurance provider required under subparagraph (A) shall be the amount equal to 6 percent of the net book premium.
“(C) DEFINITIONS.—In this paragraph:
“(i) ELIGIBLE CONTRACT.—The term ‘eligible contract’—
“(I) means a crop insurance contract entered into by an approved insurance provider in an eligible State; and
“(II) does not include a contract for—
“(aa) catastrophic risk protection under subsection (b);
“(bb) an area-based plan of insurance or similar plan of insurance, as determined by the Corporation; or
“(cc) a policy under which an approved insurance provider does not incur loss adjustment expenses, as determined by the Corporation.
“(ii) ELIGIBLE STATE.—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.
“(11) SPECIALTY CROPS.—
“(A) MINIMUM REIMBURSEMENT.—Beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, 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:
“(i) 17 percent of the premium used to define loss ratio.
“(ii) The percent of the premium used to define loss ratio that is otherwise applicable for the reinsurance year under the terms of the Standard Reinsurance Agreement in effect for the reinsurance year.
“(B) OTHER CONTRACTS.—In carrying out subparagraph (A), 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 with respect to contracts covering agricultural commodities that are not subject to such subparagraph.
“(C) ADMINISTRATION.—The requirements of this paragraph and the adjustments made pursuant to this paragraph shall not be considered a renegotiation under paragraph (8)(A).
“(12) A&O INFLATION ADJUSTMENT.—
“(A) IN GENERAL.—Subject to subparagraph (B), 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, in a manner consistent with the increases provided with respect to the 2011 through 2015 reinsurance years under the enclosure included in Risk Management Agency Bulletin numbered MGR–10–007 and dated June 30, 2010.
“(B) SPECIAL RULE FOR 2026 REINSURANCE YEAR.—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.
“(C) ADMINISTRATION.—An increase under subparagraph (A)—
“(i) shall apply with respect to all contracts covering agricultural commodities that were subject to an increase during the period of the 2011 through 2015 reinsurance years under the enclosure referred to in that subparagraph; and
“(ii) shall not be considered a renegotiation under paragraph (8)(A).”.
SEC. 10504. Premium support.
Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended—
(1) in subparagraph (C)(i), by striking “64” and inserting “69”;
(2) in subparagraph (D)(i), by striking “59” and inserting “64”;
(3) in subparagraph (E)(i), by striking “55” and inserting “60”;
(4) in subparagraph (F)(i), by striking “48” and inserting “51”; and
(5) in subparagraph (G)(i), by striking “38” and inserting “41”.
SEC. 10505. Program compliance and integrity.
Section 515(l)(2) of the Federal Crop Insurance Act (7 U.S.C. 1515(l)(2)) is amended by striking “than” and all that follows through the period at the end and inserting the following: “than—
“(A) $4,000,000 for each of fiscal years 2009 through 2025; and
“(B) $6,000,000 for fiscal year 2026 and each subsequent fiscal year.”.
SEC. 10506. Reviews, compliance, and integrity.
Section 516(b)(2)(C)(i) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(C)(i)) is amended, in the matter preceding subclause (I), by striking “for each fiscal year” and inserting “for each of fiscal years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal year thereafter”.
SEC. 10507. Poultry insurance pilot program.
Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is amended by adding at the end the following:
“(j) Poultry insurance pilot program.—
“(1) IN GENERAL.—Notwithstanding subsection (a)(2), the Corporation shall establish a pilot program under which contract poultry growers, including growers of broilers and laying hens, may elect to receive index-based insurance from extreme weather-related risk resulting in increased utility costs (including costs of natural gas, propane, electricity, water, and other appropriate costs, as determined by the Corporation) associated with poultry production.
“(2) STAKEHOLDER ENGAGEMENT.—The Corporation shall engage with poultry industry stakeholders in establishing the pilot program under paragraph (1).
“(3) LOCATION.—The pilot program established under paragraph (1) shall be conducted in a sufficient number of counties to provide a comprehensive evaluation of the feasibility, effectiveness, and demand among producers in the top poultry producing States, as determined by the Corporation.
“(4) APPROVAL OF POLICY OR PLAN.—Notwithstanding section 508(l), the Board shall approve a policy or plan of insurance based on the pilot program under paragraph (1)—
“(A) in accordance with section 508(h); and
“(B) not later than 2 years after the date of enactment of this subsection.”.