In this section, the term "policy" means a policy, plan of insurance, provision of a policy or plan of insurance, and related materials.
The Corporation shall provide a payment to an applicant for research and development costs in accordance with this subsection.
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.
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-
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.
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-
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.
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.
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-
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-
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.
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).
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-
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.
The Board may prohibit advance payments to applicants who have submitted-
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).
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.
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.
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.
The Corporation shall reimburse maintenance costs associated with the annual cost of underwriting for a policy described in paragraph (1).
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-
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.
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-
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-
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.
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.
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-
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).
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.
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.
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.
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.
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.
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 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-
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.
Not later than 18 months after December 20, 2018-
In carrying out items (aa) and (bb) of subclause (i)(II), the Board shall consider-
Notwithstanding section 1502(b)(3) of this title, with respect to plans described under this paragraph, the term "beginning farmer or rancher" means a farmer or rancher who has not actively operated and managed a farm or ranch with a bona fide insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or sharecropper for more than 10 crop years.
A policy developed under this subsection may be prepared without regard to the limitations of this subchapter, including-
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 a policy to insure crops (including tomatoes, peppers, and citrus) against losses due to a tropical storm or hurricane.
Research and development under subparagraph (A) shall-
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-
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 establishment of each of the following alternative methods of adjusting for quality losses:
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-
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-
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 insurance of citrus fruit commodities and commodity types, including research and development of-
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-
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 a policy to insure the production of hops or revenue derived from the production of hops.
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-
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.
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-
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-
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-
The Corporation shall-
In carrying out research under subparagraph (A), a qualified person shall-
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-
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-
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-
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 a policy to insure in a controlled environment such as a greenhouse-
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.
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-
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-
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-
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-
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-
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-
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 a policy to insure producers of corn, cotton, and soybeans-
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.
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-
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-
The purpose of this subsection is to authorize the Corporation to enter into partnerships with public and private entities for the purpose of either-
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.
The Corporation may enter into a partnership under paragraph (2)-
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.
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-
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).
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-
1So in original. The second closing parenthesis probably should not appear.
7 U.S.C. § 1522
EDITORIAL NOTES
CODIFICATION Pub. L. 110-234 and Pub. L. 110-246 made identical amendments to this section. The amendments by Pub. L. 110-234 were repealed by section 4(a) of Pub. L. 110-246.
AMENDMENTS2018-Subsec. (b)(1)(B). Pub. L. 115-334, §11120(a)(1), amended subpar. (B) generally. Prior to amendment, text read as follows: "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 directly related to the policy if the policy is approved by the Board for sale to producers." Subsec. (b)(2)(K). Pub. L. 115-334, §11121(1), added subpar. (K).Subsec. (b)(3). Pub. L. 115-334, §11121(2), designated existing provisions as subpar. (A), inserted heading, substituted "Subject to subparagraph (B), the Corporation" for "The Corporation", and added subpar. (B).Subsec. (b)(4)(C). Pub. L. 115-334, §11120(a)(2)(A), substituted "applicant" for "approved insurance provider" in introductory provisions.Subsec. (b)(4)(D)(i). Pub. L. 115-334, §11120(a)(2)(B)(i), substituted "determined by the applicant" for "determined by the approved insurance provider".Subsec. (b)(4)(D)(iii). Pub. L. 115-334, §11120(a)(2)(B)(ii), added cl. (iii). Subsec. (c)(7) to (24). Pub. L. 115-334, §11122, redesignated par. (19) as (7) and added subpars. (E) and (F), redesignated par. (24) as (8), added pars. (9) to (19), and struck out former pars. (7) to (18) and (20) to (23) which related, respectively, to study of multiyear coverage, contract for revenue coverage plans, contract for cost of production policy, energy crop insurance policy, aquaculture insurance policy, poultry insurance policy, apiary policies, adjusted gross revenue policies for beginning producers, skiprow cropping practices, margin coverage for catfish, biomass and sweet sorghum energy crop insurance policies, study on swine catastrophic disease program, study on poultry catastrophic disease program, poultry business interruption insurance policy, study of food safety insurance, and alfalfa crop insurance policy.Subsec. (e)(2)(A). Pub. L. 115-334, §11123, substituted "not more than-" and cl. (i) for "not more than $12,500,000 for fiscal year 2008 and each subsequent fiscal year." and added cl. (ii).2014-Subsec. (b)(2)(E). Pub. L. 113-79, §11010(b), added subpar. (E) and struck out former subpar. (E) which related to Board approval of up to 50 percent of the projected total research and development costs to be paid in advance to an applicant. Subsec. (b)(4)(A). Pub. L. 113-79, §11028(b)(1), substituted "paragraph (1)" for "paragraphs (1)".Subsec. (c). Pub. L. 113-79, §11022(a)(1), struck out "contracting" after "development" in heading.Subsec. (c)(1). Pub. L. 113-79, §11022(a)(2), substituted "may conduct activities or enter into contracts to carry out research and development to maintain or improve existing policies or develop new policies to" for "may enter into contracts to carry out research and development to" in introductory provisions.Subsec. (c)(2)(A). Pub. L. 113-79, §11022(a)(3)(A), inserted "conduct research and development or" after "The Corporation may".Subsec. (c)(2)(B). Pub. L. 113-79, §11022(a)(3)(B), inserted "conducting research and development or" after "Before".Subsec. (c)(5). Pub. L. 113-79, §11022(a)(4), inserted "after expert review in accordance with section 1505(e) of this title" after "approved by the Board". Subsec. (c)(6). Pub. L. 113-79, §11022(a)(5), substituted "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" for "a pasture, range, and forage program".Subsec. (c)(10) to (16). Pub. L. 113-79, §11023(b), redesignated pars. (11) to (17) as (10) to (16), respectively, and struck out former par. (10) which related to contracts for organic production coverage improvements. Subsec. (c)(17) to (24). Pub. L. 113-79, §11023(b)(2), redesignated pars. (18) to (25) as (17) to (24), respectively. Former par. (17) redesignated (16). Pub. L. 113-79, §11022(a)(7), added pars. (17) to (24).Subsec. (c)(25). Pub. L. 113-79, §11022(a)(6), redesignated par. (17) as (25). Subsec. (d)(1). Pub. L. 113-79, §11024(a), added par. (1) and struck out former par. (1). Text read as follows: "The purpose of this subsection is to authorize the Corporation to enter into partnerships with public and private entities for the purpose of 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."Subsec. (d)(3)(F). Pub. L. 113-79, §11027(b), inserted "farm financial benchmarking," after "financial management,".Subsec. (d)(3)(G), (H). Pub. L. 113-79, §11024(b), added subpar. (G) and redesignated former subpar. (G) as (H).Subsec. (e)(1). Pub. L. 113-79, §11028(b)(2), inserted period at end.Subsec. (e)(2)(A). Pub. L. 113-79, §11022(b)(1)(A), in heading, substituted "Conducting and contracting for research and development" for "Authority" and, in text, inserted "conduct research and development and" after "the Corporation may use to". Subsec. (e)(2)(B). Pub. L. 113-79, §11022(b)(1)(B), inserted "conduct research and development and" after "for the fiscal year to". Subsec. (e)(3). Pub. L. 113-79, §11022(b)(2), struck out "to provide either reimbursement payments or contract payments" after "available" in introductory provisions.Subsec. (e)(4). Pub. L. 113-79, §11022(b)(3), struck out par. (4) which related to prohibited research and development by the Corporation. 2008-Subsec. (b)(1), (2). Pub. L. 110-246, §12022(a), added pars. (1) and (2) and struck out former pars. (1) and (2) which related to reimbursement for research and development costs directly related to a policy that was submitted to and approved by the Board under section 1508(h) of this title for reinsurance and, if applicable, offered for sale to producers, and reimbursement for research and development costs approved prior to June 20, 2000. Subsec. (b)(2)(C)(v). Pub. L. 110-246, §12033(c)(2)(B), substituted "this subchapter" for "this chapter".Subsec. (b)(3). Pub. L. 110-246, §12022(b)(1), struck out "or (2)" after "paragraph (1)". Subsec. (b)(4)(A). Pub. L. 110-246, §12022(b)(2), struck out "and (2)" after "paragraphs (1)".Subsec. (c)(10) to (16). Pub. L. 110-246, §12023(2), added pars. (10) to (16). Former par. (10) redesignated (17).Subsec. (c)(17). Pub. L. 110-246, §12033(c)(2)(B), substituted "this subchapter" for "this chapter" in introductory provisions. Pub. L. 110-246, §12023(1), redesignated par. (10) as (17).Subsec. (d)(2). Pub. L. 110-246, §7511(c)(1), substituted "the National Institute of Food and Agriculture" for "the Cooperative State Research, Education, and Extension Service". Subsec. (e)(1). Pub. L. 110-246, §12024(1), substituted "$7,500,000 for fiscal year 2008 and each subsequent fiscal year" for "$10,000,000 for each of fiscal years 2001 and 2002 and not more than $15,000,000 for fiscal year 2003 and each subsequent fiscal year." Subsec. (e)(2)(A). Pub. L. 110-246, §12024(2), substituted "$12,500,000 for fiscal year 2008" for "$20,000,000 for each of fiscal years 2001 through 2003 and not more than $25,000,000 for fiscal year 2004".Subsec. (e)(3). Pub. L. 110-246, §12024(3), substituted "the Corporation may use-" for "the Corporation may use the excess amount to carry out another function authorized under this section." and added subpars. (A) and (B).Subsec. (e)(4). Pub. L. 110-246, §12033(c)(2)(B), substituted "this subchapter" for "this chapter" in two places.
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2018 AMENDMENT Pub. L. 115-334, title XI, §11120(b), Dec. 20, 2018, 132 Stat. 4927, provided that:"(1) IN GENERAL.-The amendments made by this section [amending this section] shall apply to reimbursement requests made on or after October 1, 2016."(2) RESUBMISSION OF DENIED REQUEST.-An applicant that was denied all or a portion of a reimbursement request under paragraph (1) of section 522(b) of the Federal Crop Insurance Act (7 U.S.C. 1522(b)) during the period between October 1, 2016, and the date of the enactment of this Act [Dec. 20, 2018] shall be given an opportunity to resubmit such request."
EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110-234 by Pub. L. 110-246 effective May 22, 2008, the date of enactment of Pub. L. 110-234 except as otherwise provided, see section 4 of Pub. L. 110-246 set out as an Effective Date note under section 8701 of this title. Pub. L. 110-234, title VII, §7511(c), May 22, 2008, 122 Stat. 1267, and Pub. L. 110-246, §4(a), title VII, §7511(c), June 18, 2008, 122 Stat. 1664, 2028, provided that the amendments made by section 7511(c) are effective Oct. 1, 2009.[Pub. L. 110-234 and Pub. L. 110-246 enacted identical provisions. Pub. L. 110-234 was repealed by section 4(a) of Pub. L. 110-246 set out as a note under section 8701 of this title.]
EFFECTIVE DATESection effective Oct. 1, 2000, see section 171(b)(1)(A) of Pub. L. 106-224 set out as an Effective Date of 2000 Amendment note under section 1501 of this title.
REIMBURSEMENT REGULATIONS Pub. L. 107-20, title II, §21032103,, 115 Stat. 165, provided that: "(a) Not later than August 1, 2001, the Federal Crop Insurance Corporation shall promulgate final regulations to carry out section 522(b) of the Federal Crop Insurance Act ( 7 U.S.C. 522(b) [1522(b)]), without regard to-"(1) the notice and comment provisions of section 553 of title 5, United States Code;"(2) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking; and"(3) chapter 35 of title 44, United States Code (commonly known as the 'Paperwork Reduction Act')."(b) In carrying out this section, the Corporation shall use the authority provided under section 808 of title 5, United States Code."(c) The final regulations promulgated under subsection (a) shall take effect on the date of publication of the final regulations."