Specialty Crop Agents Get Relief: What the July 4th Bill Means

On July 4th, Congress passed a sweeping budget reconciliation package (nicknamed the One Big Beautiful Bill) that delivers long-overdue relief for agents selling specialty crop policies. The changes mark a structural shift in how the federal crop insurance program treats high-value, high-service crops, and directly responds to years of agent and grower advocacy.

We have broken down the most important takeaways below and explain how these updates impact agents and their specialty crop clients.

MPCI: Better Subsidies for Growers, Stronger Incentives for Agents

Starting in crop year 2026, premium subsidies are increasing for RP and YP policies using Optional or Basic Units. For example:

• 60% coverage level: subsidy increases from 64% → 69%

• 75% coverage level: subsidy increases from 55% → 60%

These improvements make policies more affordable for growers and increase the likelihood they’ll opt for higher levels of coverage — especially important in specialty where deductible risk is often more acute.

Why it matters: Higher subsidies mean better return, better grower adoption, and potential for higher premium volume.

SCO & ECO: Bigger Bands, Better Subsidies

• SCO premium support increases from 65% → 80%

• SCO coverage now available up to 90%

• ECO subsidy rates remain high and unchanged

For high-value fruit and nut crops where even slight production losses carry large revenue implications, the 75–95% band (SCO + ECO) is becoming a highly efficient way to close coverage gaps — and now it's subsidized at an even better rate.

Why it matters: These tools have historically been underused in specialty crops. With new economics, they’re much more compelling. Reach out to those pistachio and citrus growers again — the math may finally make sense.

WFRP: Now Up to 90%

Whole-Farm Revenue Protection, already the most useful tool for diversified specialty growers, is getting a boost: maximum coverage increases to 90%.

Why it matters: Many diversified farms were only mildly protected at 80–85% coverage. This puts it more in line with row crop risk tools and stronger option for operations selling into local or organic markets.

The Commission Floor: A Structural Correction for Specialty Agents

Starting in the 2026 reinsurance year, AIPs will no longer be allowed to pay below 17% total agent commission on specialty crop policies (i.e. Category C crops).

Since the 2011 SRA revisions, Approved Insurance Providers (AIPs) have had latitude to apply internal “SRA factors” to different crops and regions — meaning an APH policy with 21.9% headline A&O might only earn 12% in combined base commission and profit share. The SRA factor combined with opacity around profit share distributions has historically allowed AIPs to underwrite by disincentivizing agencies from writing certain types of insurance. Specialty agents have had to work harder for lower commissions on more complex policies, a situation we explored in detail in February. The July 4th bill, for the first time, pushes back on that dynamic.

The new law guarantees 17% total A&O compensation — across base commission and profit share — for Category C crops (almonds, apples, grapes, peaches, and other tree and vine crops). That’s a floor, not a ceiling.

Why it matters: no more 11–13% “take it or leave it” offers from AIPs, and up to 40% increase in commission for specialty agents. Improved economics should further incentivize agents to focus on Category C crop growers and attract agents to agencies like ours that specialize in specialty crop insurance processing. More consistent earnings potential will also increase predictability of cash flows, allowing further investment into our growth flywheel. This is a structural correction to a structural disadvantage.

Disaster Aid for '23 & '24 Losses

A new Supplemental Disaster Relief Program will provide financial assistance to growers who experienced weather-related revenue or production losses in 2023 and 2024. The sign-up opens this week.

Why it matters:

• If growers had losses but received limited insurance indemnities, this program could top them up

• If they were uninsured, it’s a good reason to discuss coverage now

• Agents can support clients by sharing sign-up information and documentation tips

Specialty Crop Block Grant Program: More Funding on the Table

The Specialty Crop Block Grant Program remains a powerful source of support for your growers. The bill increases annual funding to $100 million, which can go toward: equipment and infrastructure, food safety upgrades, market development and promotion, and research projects that benefit specific crops or regions.

Why it matters: These funds can de-risk farming operations which in turn makes growers better insurance candidates.

Shifting Opportunity

These changes could beckon a turning point for specialty crop agents. For the first time in over a decade, the federal crop insurance framework is moving toward specialty crop parity, not away from it. At Till, we are re-running the numbers, helping agents reach out to smaller vineyard or citrus growers, and tailoring conversations with growers around disaster sign-up and subsidy changes.

Posted July 9, 2025