Ensuring Access to Risk Management Act of 2024

Bill: 118-hr-8055
Sponsor: full_name: Rep. Scott, Austin [R-GA-8]
Introduced: 2024-04-17
Policy area: Agriculture and Food
Latest action: action_date: 2024-09-03
text: Referred to the Subcommittee on Nutrition, Foreign Agriculture, and Horticulture.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 8055 IN THE HOUSE OF REPRESENTATIVES April 17, 2024 Mr. Austin Scott of Georgia (for himself, Mr. Mann , and Mr. Panetta ) introduced the following bill; which was referred to the Committee on Agriculture A BILL 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.

1. Short title This Act may be cited as the Ensuring Access to Risk Management Act of 2024 . 2. Reimbursement for administrative and operating expenses with respect to specialty crops contracts Section 508(k) of the Federal Crop Insurance Act ( 7 U.S.C. 1508(k) ) is amended by adding at the end of the following: (10) Specialty crops (A) Minimum reimbursement Beginning with the 2022 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 title I of the Specialty Crops Competitiveness Act of 2004 ( 7 U.S.C. 1621 note) shall be equal to or greater than the percent 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 as compared to what the amount or the rate of such reimbursement would be had this paragraph not been enacted. (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). (11) Adjustment (A) In general Beginning with the 2024 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 described in paragraph (10)(A)(ii) in order to account for inflation in a manner that is consistent with the increases provided with respect to the 2011 through 2015 reinsurance years under the enclosure, included in the Risk Management Agency’s Bulletin, MGR–10–007, dated June 30, 2010. (B) Administration The increase described in subparagraph (A) shall— (i) 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 described in such subparagraph; (ii) not be considered a renegotiation under paragraph (8); and (iii) from one reinsurance year to an immediately following reinsurance year, not exceed the applicable annual percentage increase in the Consumer Price Index for All Urban Consumers. .