Sec. 11022. Research and development priorities
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Section 522(c) of the Federal Crop Insurance Act ( 7 U.S.C. 1522(c) ) is amended— in the subsection heading, by striking ; contracting in paragraph (1), in the matter preceding subparagraph (A), by striking may enter into contracts to carry out research and development to and inserting may conduct activities or enter into contracts to carry out research and development to maintain or improve existing policies or develop new policies to ; in paragraph (2)— in subparagraph (A), by inserting conduct research and development or after The Corporation may ; and in subparagraph (B), by inserting conducting research and development or after Before ; in paragraph (5), by inserting after expert review in accordance with section 505(e) after approved by the Board ; in paragraph (6), by striking a pasture, range, and forage program and inserting 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 ; by redesignating paragraph
(17)as paragraph (25); and by inserting after paragraph (16), the following: The Corporation shall offer to enter into a contract with a qualified entity to conduct research and development regarding a policy to insure producers against reduction in the margin between the market value of catfish and selected costs incurred in the production of catfish. Eligibility for the policy described in subparagraph
(A)shall be limited to freshwater species of catfish that are propagated and reared in controlled or selected environments. The Board shall review the policy described in subparagraph
(B)under section 508(h) and approve the policy if the Board finds that the policy— will likely result in a viable and marketable policy consistent with this subsection; would provide crop insurance coverage in a significantly improved form; adequately protects the interests of producers; and meets other requirements of this subtitle determined appropriate by the Board. The Corporation shall offer to enter into 1 or more contracts with qualified entities to carry out research and development regarding— a policy to insure biomass sorghum that is grown expressly for the purpose of producing a feedstock for renewable biofuel, renewable electricity, or biobased products; and a policy to insure sweet sorghum that is grown for a purpose described in clause (i). Research and development with respect to each of the policies required in subparagraph
(A)shall evaluate the effectiveness of risk management tools for the production of biomass sorghum or sweet sorghum, including policies and plans of insurance that— are based on market prices and yields; to the extent that insufficient data exist to develop a policy based on market prices and yields, evaluate the policies and plans of insurance based on the use of weather indices, including excessive or inadequate rainfall, to protect the interest of crop producers; and provide protection for production or revenue losses, or both. The Corporation shall contract with 1 or more qualified entities to conduct a study to determine the feasibility of insuring swine producers for a catastrophic event. Not later than 1 year after the date of the enactment of this paragraph, 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 the results of the study conducted under subparagraph (A). 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. 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 subtitle. 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— grow multiple crops; or may have income from the production of livestock that uses a crop grown on the farm. 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. The Corporation shall contract with a qualified person to conduct a study to determine the feasibility of insuring poultry producers for a catastrophic event. Not later than 1 year after the date of the enactment of this paragraph, 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 the results of the study conducted under subparagraph (A). In this paragraph, the terms poultry and poultry grower have the meanings given those terms in section 2(a) of the Packers and Stockyards Act, 1921 ( 7 U.S.C. 182(a) ). The Corporation shall offer to enter into a contract or cooperative agreement with an institution of higher education or other legal entity to carry out research and development regarding a policy to insure the commercial production of poultry against business interruptions caused by integrator bankruptcy. As part of the research and development conducted pursuant to a contract or cooperative agreement entered into under subparagraph (B), the entity shall— evaluate the market place for business interruption insurance that is available to poultry growers; determine what statutory authority would be necessary to implement a business interruption insurance through the Corporation; assess the feasibility of a policy or plan of insurance offered under this subtitle to insure against a portion of losses due to business interruption or to the bankruptcy of an business integrator; and analyze the costs to the Federal Government of a Federal business interruption insurance program for poultry growers or producers. Not later than 180 days after the date of enactment of this paragraph, the Corporation shall offer to enter into the contract or cooperative agreement required by subparagraph (B). Not later than 1 year after the date of enactment of this paragraph, 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 the results of the research and development conducted pursuant to the contract or cooperative agreement entered into under subparagraph (B).] The Corporation shall offer to enter into a contract with 1 or more qualified entities to conduct a study to determine whether offering policies that provide coverage for specialty crops from food safety and contamination issues would benefit agricultural producers. The study described in subparagraph
(A)shall evaluate policies and plans of insurance coverage that provide protection for production or revenue impacted by food safety concerns including, at a minimum, government, retail, or national consumer group announcements of a health advisory, removal, or recall related to a contamination concern. Not later than 1 year after the date of enactment of this paragraph, 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 the results of the study conducted under subparagraph (A). . The Corporation shall offer to enter into 1 or more contracts with qualified entities to carry out research and development regarding a policy to insure alfalfa. Not later than 1 year after the date of enactment of this paragraph, 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 the results of the study conducted under subparagraph (A). . Section 522(e) of the Federal Crop Insurance Act ( 7 U.S.C. 1522(e) ) is amended— in paragraph (2)— in subparagraph (A)— in the subparagraph heading, by striking and inserting Authority .— ; and Conducting and contracting for research and development .— by inserting conduct research and development and after the Corporation may use to ; and in subparagraph (B), by inserting conduct research and development and after for the fiscal year to ; in paragraph (3), in the matter preceding subparagraph (A), by striking to provide either reimbursement payments or contract payments ; and by striking paragraph (4).
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