SEC. 201. Standard Reinsurance Agreement.
Section 508(k)(8) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(8)) is amended—
in subparagraph (A), in the matter preceding clause (i), by striking “ may renegotiate” and all that follows through the end of clause (ii) and inserting the following:
“(i) not later than December 31, 2016; and
“(ii) not less than once during each period of 5 reinsurance years thereafter.”
; and
by striking subparagraph (E) and inserting the following:
“(E) Cap on overall rate of return.—Notwithstanding subparagraph (F), the Board shall ensure that the Standard Reinsurance Agreement renegotiated under subparagraph (A)(i) establishes a target rate of return for the approved insurance providers, taken as a whole, that does not exceed 8.9 percent of retained premium for each of the 2017 through 2026 reinsurance years.”