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139 STAT. 104 PUBLIC LAW 119–21—JULY 4, 2025 insurance, and coverage level selected by the beginning farmer or rancher. ‘‘(B) PERCENTAGE POINTS ADJUSTMENTS.—The percent- age points referred to in subparagraph (A) are the fol- lowing: ‘‘(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 begin- ning 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 begin- ning 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 AFFORD- ABILITY. (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 rev- enue 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 cov- erage (as determined by the Corporation), 95 per- cent.’’; 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 ADJUST- MENTS. 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 reinsur- ance 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 con- tract, the payment to an approved insurance provider required under subparagraph (A) shall be the amount equal to 6 percent of the net book premium. Contracts. Payment. Effective dates. Time periods.