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139 STAT. 105 PUBLIC LAW 119–21—JULY 4, 2025 ‘‘(C) DEFINITIONS.—In this paragraph: ‘‘(i) ELIGIBLE CONTRACT.—The term ‘eligible con- tract’— ‘‘(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 adjust- ment expenses, as determined by the Corpora- tion. ‘‘(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 there- after, 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 reinsur- ance 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 para- graph and the adjustments made pursuant to this para- graph shall not be considered a renegotiation under para- graph (8)(A). ‘‘(12) A&O INFLATION ADJUSTMENT.— ‘‘(A) IN GENERAL.—Subject to subparagraph (B), begin- ning with the 2026 reinsurance year, and for each reinsur- ance year thereafter, the Corporation shall increase the total administrative and operating expense reimbursements otherwise required under the Standard Reinsurance Agree- ment in effect for the reinsurance year in order to account for inflation, in a manner consistent with the increases Reimbursements.