RESEARCH AND DEVELOPMENT AUTHORITY.

SEC. 11122. RESEARCH AND DEVELOPMENT AUTHORITY. Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) is amended— (1) by striking paragraphs (7) through (18) and (20) through (23); (2) by redesignating paragraphs (19) and (24) as paragraphs (7) and (8), respectively; (3) in paragraph (7) (as so redesignated) (entitled “Whole farm diversified risk management insurance plan”), by adding at the end the following: “(E) Review of modifications to improve effectiveness.— “(i) In general.—Not later than 18 months after the date of enactment of the Agriculture Improvement Act of 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 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333) as historic revenue for loss years; or “(dd) using an assigned yield floor similar to the limitation described in section 508(g)(6)(A)(i), 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. “(F) Beginning farmer or rancher defined.—Notwithstanding section 502(b)(3), 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.” ; and (4) by inserting after paragraph (8) (as so redesignated) the following: “(9) Tropical storm or hurricane insurance.— “(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 a policy to insure crops (including tomatoes, peppers, and citrus) against losses due to a tropical storm or hurricane. “(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. “(C) Report.—Not later than 1 year after the date of enactment of the Agriculture Improvement Act of 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.—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: “(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 508, 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. “(C) Report.—Not later than 1 year after the date of enactment of the Agriculture Improvement Act of 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. “(11) Citrus.— “(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 insurance of citrus fruit commodities and commodity types, including research and development of— “(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.—Not later than 1 year after the date of enactment of the Agriculture Improvement Act of 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. “(12) Hops.— “(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 a policy to insure the production of hops or revenue derived from the production of hops. “(B) Report.—Not later than 1 year after the date of enactment of the Agriculture Improvement Act of 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. “(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 the date of enactment of the Agriculture Improvement Act of 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.—Not later than 18 months after the date of enactment of the Agriculture Improvement Act of 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. “(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. “(C) Report.—Not later than 18 months after the date of enactment of the Agriculture Improvement Act of 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 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.—Not later than 18 months after the date of enactment of the Agriculture Improvement Act of 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 paragraph (1); and “(ii) any recommendations with respect to those results. “(17) Greenhouse policy.— “(A) In general.— “(i) Research and development.—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— “(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 508(a)(1), and section 508(a)(2), the Corporation shall make a policy described in clause (i) available if the requirements of section 508(h) 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. “(C) Report.—Not later than 2 years after the date of enactment of the Agriculture Improvement Act of 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 508(a)(1), and section 508(a)(2), 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 508(h) 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. “(C) Report.—Not later than 2 years after the date of enactment of the Agriculture Improvement Act of 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— “(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.—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— “(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.—Notwithstanding the last sentence of section 508(a)(1), and section 508(a)(2), the Corporation shall make a policy described in clause (i) available if the requirements of section 508(h) are met. “(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. “(C) Report.—Not later than 2 years after the date of enactment of the Agriculture Improvement Act of 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— “(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.” .