7 U.S.C. § 1522 — Research and development

submitted 88 years ago by Pub. L. 106-224 to r/title-7-AGRICULTURE · 5,642 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section authorizes the Federal Crop Insurance Corporation to reimburse and advance research and development costs for approved insurance policies and to develop policies for underserved crops, regions, and producers. It also directs research on many specified crops and practices, authorizes partnerships, and sets funding limits.

(a) Definition. In this section, "policy" means an insurance policy or plan, a provision of one, and related materials. (b) Reimbursement and advances. (1) The Corporation must pay an applicant’s research and development costs under this subsection. An applicant who submits a policy under § 1508(h) may be reimbursed for reasonable research and development costs if the Board approves the policy for sale. Reasonable costs are employee or contractor wage rates no more than twice the applicable Bureau of Labor Statistics hourly wage plus benefits, calculated using the Corporation’s October 1, 2016 budget-review formula, and other actual documented costs. (2) The Board may advance part of those costs before submission and approval. It must establish procedures. To qualify, an applicant must submit a concept proposal describing the applicant’s qualifications and prior submissions, expected total costs, the policy’s need and marketability, expected producer demand and effects on producers and delivery, available actuarial data, and the risks to be covered and why they are insurable. If the requirements are met, the Board may send it to at least two suitable independent experts. The timing rules in § 1508(h)(4)(C) and (D) apply. The Board may advance up to 50 percent of projected costs if expert reports and other information show in good faith that the concept likely will produce a viable, marketable policy; that, in the Board’s sole judgment, it would significantly improve coverage, serve a traditionally underserved crop or region, or address a recognized program problem; that the applicant will provide monitoring reports; that the budget and schedule are reasonable; and that other Board requirements are met. The Board may waive the 50-percent limit and approve an additional 25 percent after work begins if it finds the policy will cover an underserved region or crop, including specialty crops, and the applicant is making satisfactory progress. The Board must set a submission date. If the policy is timely submitted and approved, the applicant may receive ordinary reasonable-cost reimbursement minus advances. If it is submitted but not approved, the Corporation may not seek repayment of advances and may not make further payments for that submission. If an applicant receives an advance but, without just cause, fails to submit a completed submission as required after notice and a reasonable chance to respond, the applicant must repay the advance with interest. The Board may bar advances to applicants whose proposals or submissions did not produce a marketable product or were poor quality. Denial of advances does not bar ordinary reimbursement. The Board may waive viability and marketability requirements for hemp research. (3) The Corporation must approve a reimbursement under paragraph (1) only after determining that the policy is marketable based on a reasonable marketing plan, as determined by the Board, but may waive that requirement for hemp. (4) The Corporation must reimburse annual underwriting-maintenance costs for a policy under (1), for no more than four reinsurance years after Board approval. After four years, the applicant may maintain the policy and charge approved insurers a fee, or transfer maintenance to the Corporation. Subject to Board approval, the applicant sets the fee. The Board must approve it unless unreasonable compared with maintenance costs or it unnecessarily limits use. After approval, the Board does not review it unless the applicant asks, the policy substantially changes, or substantial evidence shows the fee limits sales or use. (5) Payment is full payment for the research and development and property rights in the policy. (6) The amount depends on the policy’s complexity and the size of the area in which the policy or related material is expected to be sold. (c) Research and development. (1) The Corporation may conduct or contract for research to maintain or improve policies or create policies that increase participation in States with traditionally and continually low participation and availability and that are underserved, in other underserved areas, and among producers of underserved commodities, including specialty crops. (2) It may contract with qualified persons under Corporation procedures, but must consult producer groups representing commodities the policies would serve. (3) A qualified person has crop-insurance or farm or ranch risk-management experience, including a college, university, approved insurer, or trade or research organization, as the Corporation determines. (4) Contracts may cover new or expanded policies based on adjusted gross income, cost of production, quality losses, or an intermediate base program with greater coverage and cost than catastrophic protection. (5) The Corporation may offer policies developed here and approved by the Board after expert review under § 1505(e). (6) One of its highest priorities must be policies increasing participation by producers of underserved commodities, including sweet sorghum, biomass sorghum, rice, peanuts, sugarcane, alfalfa, pennycress, dedicated energy crops, and specialty crops. (7) Unless it approves a similar whole-farm plan for the 2016 reinsurance year, the Corporation must develop one with a $1,500,000 liability limit. It must let a diversified crop or livestock producer qualify for an indemnity when actual gross farm revenue is below 85 percent of average or reasonably expected gross farm revenue. It must allow producers, including direct-to-consumer marketers and producers serving local, regional, or identity-preserved markets, who produce multiple commodities such as specialty or industrial crops, livestock, and aquaculture, to use it instead of another plan. It may provide extra coverage rates, premium discounts, or other benefits for diversification involving multiple crops or livestock using farm-grown crops. It may cover packing, packaging, or similar on-farm work that is the minimum needed to remove a commodity from the field. Within 18 months after December 20, 2018, the Corporation must hold stakeholder meetings and the Board must review and appropriately change procedures and paperwork to reduce burdens and increase flexibility and effectiveness. The Board must consider removing nursery and livestock caps; waiving limits to expand operations, especially for small and beginning farmers; reducing paperwork; a much simpler option for producers under $1,000,000 gross revenue; alternative records such as time-stamped photographs and technology applications; treating aquaculture growth stages as separate crops; and reducing disaster-year effects by averaging historic and projected revenue, counting indemnities and § 7333 payments as historic revenue in loss years, or using an assigned yield floor like § 1508(g)(6)(A)(i). It must also consider better agent training and outreach to underserved regions and sectors such as small dairy farms, and coverage for insurable losses after the deductible up to the total coverage maximum. (8) A policy may be prepared without this subchapter’s limits on coverage levels and rates or its requirement that each commodity’s price equal the Board-established expected market price. (9) The Corporation must research or contract for a policy covering crops, including tomatoes, peppers, and citrus, against tropical-storm or hurricane losses. The research must assess low-frequency catastrophic-weather risk tools and produce protection for production loss, revenue loss, or both. Within one year after December 20, 2018, it must report results and recommendations to the House Agriculture Committee and Senate Agriculture, Nutrition, and Forestry Committee. (10) It must research or contract for three quality-loss methods: one not affecting actual production history, one allowing a producer to exclude a quality loss too small to trigger an indemnity, and one or more combinations. Despite § 1508(g) and (m), any method used must be optional and have an actuarially sound premium. A report on results and recommendations is due to the same committees within one year. (11) It must research or contract for citrus insurance, including improving existing policies such as whole-farm revenue protection, alternative citrus-revenue methods, and new or expanded citrus-revenue policies, and report within one year. (12) It must research or contract for a hops production or revenue policy and report within one year. (13) It must research or contract for a separate subsurface-irrigation practice, including a county transitional yield reflecting average productivity and yield gains from installing such a system, and report within 18 months. (14) It must research or contract for irrigated-grain-sorghum policies, alternatives for producers with no more than four years’ history, and county comparisons of rates, average yields, and coverage levels with other feed grains, and report within 18 months. (15) It must consider extending limited-irrigation insurance to neighboring similarly situated States such as Colorado and Nebraska; research the existing program’s marketability; and recommend ways to increase participation. A qualified researcher must study reduced or limited irrigation and expected yield reductions, work with water officials, recommend conservation incentives, and develop web applications to streamline coverage. A report on results, recommendations, and Corporation actions is due within 18 months. (16) It must research adding innovative rice irrigation practices to the current policy or creating an endorsement for alternate wetting and drying, also called "intermittent flooding," and furrow irrigation, and report within 18 months. (17) It must research or contract for greenhouse coverage of floriculture, nursery, and bedding plants; establishing cuttings or tissue culture in a growing medium; and other similar production determined by the Secretary. If § 1508(h) is met, the Corporation must offer the policy despite the cited § 1508(a) limits. Research must consider disease from the environment, contaminated plant materials, quarantine or destruction orders, other controlled-environment losses such as weather-caused power loss, best practices, one policy for many plants versus one type per policy, streamlined paperwork for short schedules and variable crop years, and revenue-loss protection. A report is due within two years. (18) It must study or contract for the feasibility of insurance for floriculture, fruits, vegetables, poultry, livestock, or their products targeted to local consumers and markets. If the study is viable and § 1508(h) is met, it must make the policy available despite the cited limits. The study must consider small urban, suburban, and rural production; varied marketing; soil, vertical, greenhouse, rooftop, and hydroponic systems; price premiums; coverage for many production types or one plant type per policy; and streamlined paperwork. A report is due within two years and must examine adapting existing plans, describe results, and give recommendations. (19) It must research or contract for coverage for corn, cotton, and soybean producers on highly productive batture land in the Lower Mississippi River Valley who have at least five years’ production history and experienced more frequent flooding during the prior ten years because of sedimentation or Federal engineering. If § 1508(h) is met, the policy must be offered despite the cited limits. Research must consider affordable policies, premium changes, automatic yield exclusion for consecutive losses, and flexible final planting dates and prevented-planting rules. A report is due within two years and must examine adapting existing policies, describe results, and give recommendations. (d) Partnerships. (1) The Corporation may partner with public and private entities to increase loss-mitigation, financial, and other risk-management tools, prioritizing § 7333 commodities, specialty crops, and underserved commodities, or to improve compliance analysis and technology and identify and use innovative compliance strategies. (2) Partners may include the National Institute of Food and Agriculture, Agricultural Research Service, National Oceanic and Atmospheric Administration, and other capable entities. (3) Partnerships may improve timely weather warnings; develop efficient pest and fertilizer methods; improve planning, breeding, planting, growing, maintenance, harvesting, storage, shipping, and marketing; clarify labor requirements; help State foresters use prescribed burning on private forest land; train producers in financial management, benchmarking, insurance, marketing contracts, and other risk tools; improve compliance analysis and technology; and develop other tools increasing economic and production stability. (e) Funding. (1) From the § 1516(c) insurance fund, the Corporation may use no more than $7,500,000 each fiscal year beginning in 2008 for reimbursements under (b). (2)(A) It may use no more than $12,500,000 in each fiscal year 2008–2018 and $8,000,000 in fiscal year 2019 and later for research, development, contracts, and partnerships under (c) and (d). (B) Of the annual amount in (A), no more than $5,000,000 may be used for research and contracting to serve underserved States under (c)(1)(A). (3) If money is not needed for those purposes, the Corporation may use up to $5,000,000 each fiscal year to improve program integrity through compliance training, compliance analysis tools and technology, information technology, and innovative compliance strategies. Any remaining excess may be used for other activities authorized by this section.

the actual law source: uscode.house.gov ↗public domain

(a) Definition of policy

In this section, the term “policy” means a policy, plan of insurance, provision of a policy or plan of insurance, and related materials.

(b) Reimbursement of research, development, and maintenance costs

(1) Research and development payment

(A) In general

The Corporation shall provide a payment to an applicant for research and development costs in accordance with this subsection.

(B) Reimbursement

(i) In general

An applicant who submits a policy under section 1508(h) of this title shall be eligible for the reimbursement of reasonable research and development costs if the policy is approved by the Board for sale to producers.

(ii) Reasonable costs

For the purpose of reimbursing research and development and maintenance costs under this section, costs of the applicant shall be considered reasonable costs if the costs are based on—

(I)

for any employees or contracted personnel, wage rates equal to not more than 2 times the hourly wage rate plus benefits, as provided by the Bureau of Labor Statistics for the year in which such costs are incurred, calculated using the formula applied to an applicant by the Corporation in reviewing proposed project budgets under this section on October 1, 2016; and

(II)

other actual documented costs incurred by the applicant.

(2) Advance payments

(A) In general

Subject to the other provisions of this paragraph, the Board may approve the request of an applicant for advance payment of a portion of reasonable research and development costs prior to submission and approval of the policy by the Board under section 1508(h) of this title.

(B) Procedures

The Board shall establish procedures for approving advance payment of reasonable research and development costs to applicants.

As a condition of eligibility for advance payments, an applicant shall submit a concept proposal for the policy that the applicant plans to submit to the Board under section 1508(h) of this title, consistent with procedures established by the Board for submissions under subparagraph (B), including—

(i)

a summary of the qualifications of the applicant, including any prior concept proposals and submissions to the Board under section 1508(h) of this title and, if applicable, any work conducted under this section;

(ii)

a projection of total research and development costs that the applicant expects to incur;

(iii)

a description of the need for the policy, the marketability of and expected demand for the policy among affected producers, and the potential impact of the policy on producers and the crop insurance delivery system;

(iv)

a summary of data sources available to demonstrate that the policy can reasonably be developed and actuarially appropriate rates established; and

(v)

an identification of the risks the proposed policy will cover and an explanation of how the identified risks are insurable under this subchapter.

(D) Review

(i) Experts

If the requirements of subparagraph (B) and (C) are met, the Board may submit a concept proposal described in subparagraph (C) to not less than 2 independent expert reviewers, whose services are appropriate for the type of concept proposal submitted, to assess the likelihood that the proposed policy being developed will result in a viable and marketable policy, as determined by the Board.

(ii) Timing

The time frames described in subparagraphs (C) and (D) of section 1508(h)(4) of this title shall apply to the review of concept proposals under this subparagraph.

(E) Approval

(i) In general

The Board may approve up to 50 percent of the projected total research and development costs to be paid in advance to an applicant, in accordance with the procedures developed by the Board for the making of the payments, if, after consideration of the reviewer reports described in subparagraph (D) and such other information as the Board determines appropriate, the Board determines that—

(I)

the concept, in good faith, will likely result in a viable and marketable policy consistent with section 1508(h) of this title;

(II)

at the sole discretion of the Board, the concept, if developed into a policy and approved by the Board, would provide crop insurance coverage—

(aa)

in a significantly improved form;

(bb)

to a crop or region not traditionally served by the Federal crop insurance program; or

(cc)

in a form that addresses a recognized flaw or problem in the program;

(III)

the applicant agrees to provide such reports as the Corporation determines are necessary to monitor the development effort;

(IV)

the proposed budget and timetable are reasonable, as determined by the Board; and

(V)

the concept proposal meets any other requirements that the Board determines appropriate.

(ii) Waiver

The Board may waive the 50-percent limitation and, upon request of the submitter after the submitter has begun research and development activities, the Board may approve an additional 25 percent advance payment to the submitter for research and development costs, if, at the sole discretion of the Board, the Board determines that—

(I)

the intended policy or plan of insurance developed by the submitter will provide coverage for a region or crop that is underserved by the Federal crop insurance program, including specialty crops; and

(II)

the submitter is making satisfactory progress towards developing a viable and marketable policy or plan of insurance consistent with section 1508(h) of this title.

(F) Submission of policy

If the Board approves an advanced payment under subparagraph (E), the Board shall establish a date by which the applicant shall present a submission in compliance with section 1508(h) of this title (including the procedures implemented under that section) to the Board for approval.

(G) Final payment

(i) Approved policies

If a policy is submitted under subparagraph (F) and approved by the Board under section 1508(h) of this title and the procedures established by the Board (including procedures established under subparagraph (B)), the applicant shall be eligible for a payment of reasonable research and development costs in the same manner as policies reimbursed under paragraph (1)(B), less any payments made pursuant to subparagraph (E).

(ii) Policies not approved

If a policy is submitted under subparagraph (F) and is not approved by the Board under section 1508(h) of this title, the Corporation shall—

(I)

not seek a refund of any payments made in accordance with this paragraph; and

(II)

not make any further research and development cost payments associated with the submission of the policy under this paragraph.

(H) Policy not submitted

If an applicant receives an advance payment and fails to fulfill the obligation of the applicant to the Board by not submitting a completed submission without just cause and in accordance with the procedures established under subparagraph (B)) 1, including notice and reasonable opportunity to respond, as determined by the Board, the applicant shall return to the Board the amount of the advance plus interest.

(I) Repeated submissions

The Board may prohibit advance payments to applicants who have submitted—

(i)

a concept proposal or submission that did not result in a marketable product; or

(ii)

a concept proposal or submission of poor quality.

(J) Continued eligibility

A determination that an applicant is not eligible for advance payments under this paragraph shall not prevent an applicant from reimbursement under paragraph (1)(B).

(K) Waiver for hemp

The Board may waive the viability and marketability requirements under this paragraph in the case of research and development relating to a policy to insure the production of hemp.

(3) Marketability

(A) In general

Subject to subparagraph (B), the Corporation shall approve a reimbursement under paragraph (1) only after determining that the policy is marketable based on a reasonable marketing plan, as determined by the Board.

(B) Waiver for hemp

The Corporation may waive the marketability requirement under subparagraph (A) in the case of research and development relating to a policy to insure the production of hemp.

(4) Maintenance payments

(A) Requirement

The Corporation shall reimburse maintenance costs associated with the annual cost of underwriting for a policy described in paragraph (1).

(B) Duration

Payments with respect to maintenance costs may be provided for a period of not more than four reinsurance years subsequent to Board approval for payment under this subsection.

On the expiration of the 4-year period described in subparagraph (B), the applicant responsible for maintenance of the policy may—

(i)

maintain the policy and charge a fee to approved insurance providers that elect to sell the policy under this subsection; or

(ii)

transfer responsibility for maintenance of the policy to the Corporation.

(D) Fee

(i) Amount

Subject to approval by the Board, the amount of the fee that is payable by an approved insurance provider that elects to sell the policy shall be an amount that is determined by the applicant maintaining the policy.

(ii) Approval

The Board shall approve the amount of a fee determined under clause (i) for maintenance of the policy unless the Board determines that the amount of the fee—

(I)

is unreasonable in relation to the maintenance costs associated with the policy; or

(II)

unnecessarily inhibits the use of the policy.

(iii) Review

After the Board approves the amount of a fee under clause (ii), the fee shall remain in effect and not be reviewed by the Board unless—

(I)

the applicant petitions the Board for reconsideration of the fee;

(II)

a substantial change is made to the policy, as determined by the Board; or

(III)

there is substantial evidence that the fee is inhibiting sales or use of the policy, as determined by the Board.

(5) Treatment of payment

Payments made under this subsection for a policy shall be considered as payment in full by the Corporation for the research and development conducted with regard to the policy and any property rights to the policy.

(6) Reimbursement amount

The Corporation shall determine the amount of the payment under this subsection for an approved policy based on the complexity of the policy and the size of the area in which the policy or material is expected to be sold.

(1) Authority

The Corporation may conduct activities or enter into contracts to carry out research and development to maintain or improve existing policies or develop new policies to—

(A)

increase participation in States in which the Corporation determines that—

(i)

there is traditionally, and continues to be, a low level of Federal crop insurance participation and availability; and

(ii)

the State is underserved by the Federal crop insurance program;

(B)

increase participation in areas that are underserved by the Federal crop insurance program; and

(C)

increase participation by producers of underserved agricultural commodities, including specialty crops.

(2) Underserved agricultural commodities and areas

(A) Authority

The Corporation may conduct research and development or enter into contracts under procedures prescribed by the Corporation with qualified persons to carry out research and development for policies that promote the purposes of paragraph (1).

(B) Consultation

Before conducting research and development or entering into a contract under subparagraph (A), the Corporation shall consult with groups representing producers of agricultural commodities that would be served by the policies that are the subject of the research and development.

(3) Qualified persons

A person with experience in crop insurance or farm or ranch risk management (including a college or university, an approved insurance provider, and a trade or research organization), as determined by the Corporation, shall be eligible to enter into a contract with the Corporation under this subsection.

(4) Types of contracts

A contract under this subsection may provide for research and development regarding new or expanded policies, including policies based on adjusted gross income, cost-of-production, quality losses, and an intermediate base program with a higher coverage and cost than catastrophic risk protection.

(5) Use of resulting policies

The Corporation may offer any policy developed under this subsection that is approved by the Board after expert review in accordance with section 1505(e) of this title.

(6) Research and development priorities

The Corporation shall establish as one of the highest research and development priorities of the Corporation the development of policies that increase participation by producers of underserved agricultural commodities, including sweet sorghum, biomass sorghum, rice, peanuts, sugarcane, alfalfa, pennycress, dedicated energy crops, and specialty crops.

(7) Whole farm diversified risk management insurance plan

(A) In general

Unless the Corporation approves a whole farm insurance plan, similar to the plan described in this paragraph, to be available to producers for the 2016 reinsurance year, the Corporation shall conduct activities or enter into contracts to carry out research and development to develop a whole farm risk management insurance plan, with a liability limitation of $1,500,000, that allows a diversified crop or livestock producer the option to qualify for an indemnity if actual gross farm revenue is below 85 percent of the average gross farm revenue or the expected gross farm revenue that can reasonably be expected of the producer, as determined by the Corporation.

(B) Eligible producers

The Corporation shall permit producers (including direct-to-consumer marketers and producers servicing local and regional and farm identity-preserved markets) who produce multiple agricultural commodities, including specialty crops, industrial crops, livestock, and aquaculture products, to participate in the plan developed under subparagraph (A) in lieu of any other plan under this subchapter.

The Corporation may provide diversification-based additional coverage payment rates, premium discounts, or other enhanced benefits in recognition of the risk management benefits of crop and livestock diversification strategies for producers that—

(i)

grow multiple crops; or

(ii)

may have income from the production of livestock that uses a crop grown on the farm.

(D) Market readiness

The Corporation may include coverage for the value of any packing, packaging, or any other similar on-farm activity the Corporation determines to be the minimum required in order to remove the commodity from the field.

(E) Review of modifications to improve effectiveness

(i) In general

Not later than 18 months after December 20, 2018—

(I)

the Corporation shall hold stakeholder meetings to solicit producer and agent feedback; and

(II)

the Board shall—

(aa)

review procedures and paperwork requirements on agents and producers; and

(bb)

modify procedures and requirements, as appropriate, to decrease burdens and increase flexibility and effectiveness.

(ii) Factors

In carrying out items (aa) and (bb) of subclause (i)(II), the Board shall consider—

(I)

removing caps on nursery and livestock production;

(II)

allowing a waiver to expand operations, especially for small and beginning farmers;

(III)

minimizing paperwork for producers and agents;

(IV)

implementing an option for producers with less than $1,000,000 in gross revenue that requires significantly less paperwork and recordkeeping;

(V)

developing and using alternative records such as time-stamped photographs or technology applications to document planting and production history;

(VI)

treating the different growth stages of aquaculture species as separate crops to recognize the difference in perils at different phases of growth;

(VII)

moderating the impacts of disaster years on historic revenue, such as—

(aa)

using an average of the historic and projected revenue;

(bb)

counting indemnities as historic revenue for loss years;

(cc)

counting payments under section 7333 of this title as historic revenue for loss years; or

(dd)

using an assigned yield floor similar to the limitation described in section 1508(g)(6)(A)(i) of this title, as determined by the Secretary;

(VIII)

improving agent training and outreach to underserved regions and sectors such as small dairy farms; and

(IX)

providing coverage and indemnification of insurable losses—

(aa)

after the losses exceed the deductible; and

(bb)

up to the maximum amount of total coverage.

(8) Relation to limitations

A policy developed under this subsection may be prepared without regard to the limitations of this subchapter, including—

(A)

the requirement concerning the levels of coverage and rates; and

(B)

the requirement that the price level for each insured agricultural commodity must equal the expected market price for the agricultural commodity, as established by the Board.

(9) Tropical storm or hurricane insurance

(A) In general

(B) Research and development

Research and development under subparagraph (A) shall—

(i)

evaluate the effectiveness of risk management tools for a low frequency and catastrophic loss weather event; and

(ii)

result in a policy that provides protection for at least 1 of the following:

(I)

Production loss.

(II)

Revenue loss.

Not later than 1 year after December 20, 2018, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes—

(i)

the results of the research and development carried out under this paragraph; and

(ii)

any recommendations with respect to those results.

(10) Quality loss

(A) In general

(i)

A method that does not impact the actual production history of a producer.

(ii)

A method that provides that, in circumstances in which a producer has suffered a quality loss to the insured crop of the producer that is insufficient to trigger an indemnity payment, the producer may elect to exclude that quality loss from the actual production history of the producer.

(iii)

1 or more methods that combine the methods described in clauses (i) and (ii).

(B) Requirements

Notwithstanding subsections (g) and (m) of section 1508 of this title, any method developed under subparagraph (A) that is used by the Corporation shall be—

(i)

optional for a producer to use; and

(ii)

offered at an actuarially sound premium rate.

(i)

the results of the research and development carried out under subparagraph (A); and

(ii)

any recommendations with respect to those results.

(11) Citrus

(A) In general

(i)

improvements to 1 or more existing policies, including the whole-farm revenue protection pilot policy;

(ii)

alternative methods of insuring revenue for citrus fruit commodities and commodity types; and

(iii)

the development of new, or expansion of existing, revenue policies for citrus fruit commodities and commodity types.

(B) Report

(i)

the results of the research and development carried out under subparagraph (A); and

(ii)

any recommendations with respect to those results.

(12) Hops

(A) In general

(B) Report

(i)

the results of the research and development carried out under subparagraph (A); and

(ii)

any recommendations with respect to those results.

(13) Subsurface irrigation practices

(A) In general

The Corporation shall carry out research and development, or offer to enter into 1 or more contracts with 1 or more qualified persons to carry out research and development, regarding the creation of a separate practice for subsurface irrigation, including the establishment of a separate transitional yield within a county that is reflective of the average gain in productivity and yield associated with the installation of a subsurface irrigation system.

(B) Report

Not later than 18 months after December 20, 2018, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes—

(i)

the results of the research and development carried out under subparagraph (A); and

(ii)

any recommendations with respect to those results.

(14) Grain sorghum

(A) In general

The Corporation shall carry out research and development, or offer to enter into 1 or more contracts with 1 or more qualified persons to carry out research and development—

(i)

regarding improvements to 1 or more policies to insure irrigated grain sorghum;

(ii)

regarding alternative methods for producers with not more than 4 years of production history to insure irrigated grain sorghum; and

(iii)

to assess, by county, the difference in the rate, average yield, and coverage level of grain sorghum policies compared to policies for other feed grains in that county.

(B) Report

(i)

the results of the research and development carried out under subparagraph (A); and

(ii)

any recommendations with respect to those results.

(15) Limited irrigation practices

(A) Authority

The Corporation shall—

(i)

consider expanding the availability of the limited irrigation insurance program to neighboring and similarly situated States (such as the States of Colorado and Nebraska), as determined by the Secretary;

(ii)

carry out research, or offer to enter into 1 or more contracts with 1 or more qualified persons to carry out research, on the marketability of the existing limited irrigation insurance program; and

(iii)

make recommendations on how to improve participation in that program.

(B) Research

In carrying out research under subparagraph (A), a qualified person shall—

(i)

collaborate with researchers on the subjects of—

(I)

reduced irrigation practices or limited irrigation practices; and

(II)

expected yield reductions following the application of reduced irrigation;

(ii)

collaborate with State and Federal officials responsible for the collection of water and the regulation of water use for the purpose of irrigation;

(iii)

provide recommendations to encourage producers to carry out limited irrigation practices or reduced irrigation and water conservation practices; and

(iv)

develop web-based applications that will streamline access to coverage for producers electing to conserve water use on irrigated crops.

(i)

the results of the research carried out under subparagraphs (A) and (B);

(ii)

any recommendations to encourage producers to carry out limited irrigation practices or reduced irrigation and water conservation practices; and

(iii)

the actions taken by the Corporation to carry out the recommendations described in clause (ii).

(16) Insurable irrigation practices for rice

(A) In general

The Corporation shall carry out research and development, or offer to enter into 1 or more contracts with 1 or more qualified persons to carry out research and development, to include new and innovative irrigation practices under the current rice policy or the development of a distinct policy endorsement rated for rice produced using—

(i)

alternate wetting and drying practices (also referred to as “intermittent flooding”); and

(ii)

furrow irrigation practices.

(B) Report

(i)

the results of the research and development carried out under paragraph (1); and

(ii)

any recommendations with respect to those results.

(17) Greenhouse policy

(A) In general

(i) Research and development

(I)

the production of floriculture, nursery, and bedding plants;

(II)

the establishment of cuttings or tissue culture in a growing medium; or

(III)

other similar production, as determined by the Secretary.

(ii) Availability of policy

Notwithstanding the last sentence of section 1508(a)(1) of this title, and section 1508(a)(2) of this title, the Corporation shall make a policy described in clause (i) available if the requirements of section 1508(h) of this title are met.

(B) Research and development described

Research and development described in subparagraph (A)(i) shall evaluate the effectiveness of policies for the production of plants in a controlled environment, including policies that—

(i)

are based on the risk of—

(I)

plant diseases introduced from the environment;

(II)

contaminated cuttings, seedlings, or tissue culture; or

(III)

Federal or State quarantine or destruction orders associated with the contaminated items described in subclause (II);

(ii)

consider other causes of loss applicable to a controlled environment, such as a loss of electricity due to weather;

(iii)

consider appropriate best practices to minimize the risk of loss;

(iv)

consider whether to provide coverage for various types of plants under 1 policy or to provide coverage for 1 species or type of plant per policy;

(v)

have streamlined reporting and paperwork requirements that take into account short propagation schedules, variable crop years, and the variety of plants that may be produced in a single facility; and

(vi)

provide protection for revenue losses.

Not later than 2 years after December 20, 2018, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes—

(i)

the results of the research and development carried out under subparagraphs (A)(i) and (B); and

(ii)

any recommendations with respect to those results.

(18) Local foods

(A) In general

(i) Feasibility study

The Corporation shall carry out a study to determine the feasibility of, or offer to enter into 1 or more contracts with 1 or more qualified persons to carry out a study to determine the feasibility of, a policy to insure production—

(I)

of floriculture, fruits, vegetables, poultry, livestock, or the products of floriculture, fruits, vegetables, poultry, or livestock; and

(II)

that is targeted toward local consumers and markets.

(ii) Availability of policy

Notwithstanding the last sentence of section 1508(a)(1) of this title, and section 1508(a)(2) of this title, the Corporation shall make available a policy described in clause (i) if—

(I)

the results of the feasibility study under clause (i) are viable; and

(II)

the requirements of section 1508(h) of this title are met.

(B) Feasibility study described

The feasibility study described in subparagraph (A)(i) shall evaluate the effectiveness of policies for production targeted toward local consumers and markets, including policies that—

(i)

consider small-scale production in various areas, including urban, suburban, and rural areas;

(ii)

consider a variety of marketing strategies;

(iii)

allow for production in soil and in alternative systems such as vertical systems, greenhouses, rooftops, or hydroponic systems;

(iv)

consider the price premium when accounting for production or revenue losses;

(v)

consider whether to provide coverage—

(I)

for various types of production under 1 policy; and

(II)

for 1 species or type of plant per policy; and

(vi)

have streamlined reporting and paperwork requirements.

(i)

examines whether a version of existing policies such as the whole-farm revenue protection insurance plan may be tailored to provide improved coverage for producers of local foods;

(ii)

describes the results of the feasibility study carried out under subparagraph (A)(i); and

(iii)

includes any recommendations with respect to those results.

(19) High-risk, highly productive batture land policy

(A) In general

(i) Research and development

(I)

with operations on highly productive batture land within the Lower Mississippi River Valley;

(II)

that have a history of production of not less than 5 years; and

(III)

that have been impacted by more frequent flooding over the past 10 years due to sedimentation or federally constructed engineering improvements.

(ii) Availability of policy

(B) Research and development described

Research and development described in subparagraph (A)(i) shall evaluate the feasibility of less cost-prohibitive policies for batture-land producers in high risk areas, including policies that—

(i)

consider premium rate adjustments;

(ii)

consider automatic yield exclusion for consecutive-year losses; and

(iii)

allow for flexibility of final plant dates and prevent plant regulations.

(i)

examines whether a version of existing policies may be tailored to provide improved coverage for batture-land producers;

(ii)

describes the results of the research and development carried out under subparagraphs (A) and (B); and

(iii)

includes any recommendations with respect to those results.

(d) Partnerships for risk management development and implementation

(1) Purpose

The purpose of this subsection is to authorize the Corporation to enter into partnerships with public and private entities for the purpose of either—

(A)

increasing the availability of loss mitigation, financial, and other risk management tools for producers, with a priority given to risk management tools for producers of agricultural commodities covered by section 7333 of this title, specialty crops, and underserved agricultural commodities; or

(B)

improving analysis tools and technology regarding compliance or identifying and using innovative compliance strategies.

(2) Authority

The Corporation may enter into partnerships with the National Institute of Food and Agriculture, the Agricultural Research Service, the National Oceanic Atmospheric Administration, and other appropriate public and private entities with demonstrated capabilities in developing and implementing risk management and marketing options for producers of specialty crops and underserved agricultural commodities.

(3) Objectives

The Corporation may enter into a partnership under paragraph (2)—

(A)

to enhance the notice and timeliness of notice of weather conditions that could negatively affect crop yields, quality, and final product use in order to allow producers to take preventive actions to increase end product profitability and marketability and to reduce the possibility of crop insurance claims;

(B)

to develop a multifaceted approach to pest management and fertilization to decrease inputs, decrease environmental exposure, and increase application efficiency;

(C)

to develop or improve techniques for planning, breeding, planting, growing, maintaining, harvesting, storing, shipping, and marketing that will address quality and quantity challenges associated with year-to-year and regional variations;

(D)

to clarify labor requirements and assist producers in complying with requirements to better meet the physically intense and time-compressed planting, tending, and harvesting requirements associated with the production of specialty crops and underserved agricultural commodities;

(E)

to provide assistance to State foresters or equivalent officials for the prescribed use of burning on private forest land for the prevention, control, and suppression of fire;

(F)

to provide producers with training and informational opportunities so that the producers will be better able to use financial management, farm financial benchmarking, crop insurance, marketing contracts, and other existing and emerging risk management tools;

(G)

to improve analysis tools and technology regarding compliance or identifying and using innovative compliance strategies; and

(H)

to develop other risk management tools to further increase economic and production stability.

(e) Funding

(1) Reimbursements

Of the amounts made available from the insurance fund established under section 1516(c) of this title, the Corporation may use to provide reimbursements under subsection (b) not more than $7,500,000 for fiscal year 2008 and each subsequent fiscal year.

(2) Contracting

(A) Conducting and contracting for research and development

Of the amounts made available from the insurance fund established under section 1516(c) of this title, the Corporation may use to conduct research and development and carry out contracting and partnerships under subsections (c) and (d) not more than—

(i)

$12,500,000 for each of fiscal years 2008 through 2018; and

(ii)

$8,000,000 for fiscal year 2019 and each fiscal year thereafter.

(B) Underserved States

Of the amount made available under subparagraph (A) for a fiscal year, the Corporation shall use not more than $5,000,000 for the fiscal year to conduct research and development and carry out contracting for research and development to carry out the purpose described in subsection (c)(1)(A).

(3) Unused funding

If the Corporation determines that the amount available under this section for a fiscal year is not needed for such purposes, the Corporation may use—

(A)

not more than $5,000,000 for each fiscal year to improve program integrity, including by—

(i)

increasing compliance-related training;

(ii)

improving analysis tools and technology regarding compliance;

(iii)

use of information technology, as determined by the Corporation; and

(iv)

identifying and using innovative compliance strategies; and

(B)

any excess amounts to carry out other activities authorized under this section.

Source credit: (Feb. 16, 1938, ch. 30, title V, § 522, as added Pub. L. 106–224, title I, § 131, June 20, 2000, 114 Stat. 379; amended Pub. L. 110–234, title VII, § 7511(c)(1), title XII, §§ 12022–12024, 12033(c)(2)(B), May 22, 2008, 122 Stat. 1267, 1382–1388, 1405; Pub. L. 110–246, § 4(a) title VII, § 7511(c)(1), title XII, §§ 12022–12024, 12033(c)(2)(B), June 18, 2008, 122 Stat. 1664, 2028, 2144–2150, 2167; Pub. L. 113–79, title XI, §§ 11010(b), 11022, 11023(b), 11024, 11027(b), 11028(b), Feb. 7, 2014, 128 Stat. 959, 969, 973, 974, 977; Pub. L. 115–334, title XI, §§ 11120(a), 11121–11123, Dec. 20, 2018, 132 Stat. 4926–4935; Pub. L. 119–21, title I, § 10501(a)(2), July 4, 2025, 139 Stat. 103.)

history & why it existsrecord from the source credit

1938Enacted · Pub. L. 106-224 · 114 Stat. 379
2008Amended · Pub. L. 110-234 · 122 Stat. 1267, 1382
2008Amended · Pub. L. 110-246 · 122 Stat. 1664, 2028, 2144
2014Amended · Pub. L. 113-79 · 128 Stat. 959, 969, 973, 974, 977
2018Amended · Pub. L. 115-334 · 132 Stat. 4926
2025Amended · Pub. L. 119-21 · 139 Stat. 103

A history note hasn’t been published yet. The record shows enactment by Pub. L. 106-224 on 1938-02-16.

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