S 1458 — Cover Crop Flexibility Act of 2021

(a) Definitions In this section: (1) First crop The term “first crop” means the first crop of the first agricultural commodity planted for harvest, or prevented from being planted, on specific acreage during a crop year and insured under this subchapter. (2) Second crop The term “second crop” means a second crop of the same agricultural commodity as the first crop, or a crop of a different agricultural commodity following the first crop, planted on the same acreage as the first crop for harvest in the same crop year, except the term does not include a replanted crop. (3) Replanted crop The term “replanted crop” means any agricultural commodity replanted on the same acreage as the first crop for harvest in the same crop year if the replanting is required by the terms of the policy of insurance covering the first crop. (b) Double insurance (1) Options on loss to first crop Except as provided in subsections (d) and (e), if a first crop insured under this subchapter in a crop year has a total or partial insurable loss, the producer of the first crop may elect one of the following options: (A) No second crop planted The producer may— (i) elect to not plant a second crop on the same acreage for harvest in the same crop year; and (ii) collect an indemnity payment that is equal to 100 percent of the insurable loss for the first crop. (B) Second crop planted The producer may— (i) plant a second crop on the same acreage for harvest in the same crop year; and (ii) collect an indemnity payment established by the Corporation for the first crop, but not to exceed 35 percent of the insurable loss for the first crop. (2) Effect of no loss to second crop If a producer makes an election under paragraph (1)(B) and the producer does not suffer an insurable loss to the second crop, the producer may collect an indemnity payment for the first crop that is equal to— (A) 100 percent of the insurable loss for the first crop; less (B) the amount previously collected under paragraph (1)(B)(ii). (3) Premium for first crop if second crop planted (A) Initial premium If a producer makes an election under paragraph (1)(B), the producer shall be responsible for a premium for the first crop that is commensurate with the indemnity paid under paragraph (1)(B)(ii). The Corporation shall adjust the total premium for the first crop to reflect the reduced indemnity. (B) Effect of no loss to second crop If the producer makes an election under paragraph (1)(B) and the producer does not suffer an insurable loss to the second crop, the producer shall be responsible for a premium for the first crop that is equal to— (i) the full premium owed by the producer for the first crop; less (ii) the amount of premium previously paid under subparagraph (A). (c) Prevented planting coverage (1) Options on loss to first crop Except as provided in subsections (d) and (e), if a first crop insured under this subchapter in a crop year is prevented from being planted, the producer of the first crop may elect one of the following options: (A) No second crop planted The producer may— (i) elect to not plant a second crop on the same acreage for harvest in the same crop year; and (ii) subject to paragraph (4), collect an indemnity payment that is equal to 100 percent of the prevented planting guarantee for the acreage for the first crop. (B) Second crop planted The producer may— (i) plant a second crop on the same acreage for harvest in the same crop year; and (ii) subject to paragraphs (4) and (5), collect an indemnity payment established by the Corporation for the first crop, but not to exceed 35 percent of the prevented planting guarantee for the acreage for the first crop. (2) Premium for first crop if second planted If the producer makes an election under paragraph (1)(B), the producer shall pay a premium for the first crop that is commensurate with the indemnity paid under paragraph (1)(B)(ii). The Corporation shall adjust the total premium for the first crop to reflect the reduced in...

(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. (C) Concept proposal 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 polic...