HR 8527 — Conservation Opportunity and Voluntary Environment Resilience Program Act

(a) General provisions (1) Authority Except as otherwise provided in this section, the Corporation may, at the sole discretion of the Corporation, conduct a pilot program submitted to and approved by the Board under section 1508(h) of this title, or that is developed under subsection (b) or section 1522 of this title, to evaluate whether a proposal or new risk management tool tested by the pilot program is suitable for the marketplace and addresses the needs of producers of agricultural commodities. (2) Private coverage Under this section, the Corporation shall not conduct any pilot program that provides insurance protection against a risk if insurance protection against the risk is generally available from private companies. (3) Covered activities The pilot programs described in paragraph (1) may include pilot programs providing insurance protection against losses involving— (A) reduced forage on rangeland caused by drought or insect infestation; (B) livestock poisoning and disease; (C) destruction of bees due to the use of pesticides; (D) unique special risks related to fruits, nuts, vegetables, and specialty crops in general, aquacultural species, and forest industry needs (including appreciation); (E) after October 1, 2001, wild salmon, except that— (i) any pilot program with regard to wild salmon may be carried out without regard to the limitations of this subchapter; and (ii) the Corporation shall conduct all wild salmon programs under this subchapter so that, to the maximum extent practicable, all costs associated with conducting the programs are not expected to exceed $1,000,000 for fiscal year 2002 and each subsequent fiscal year. (4) Scope of pilot programs The Corporation may— (A) approve a pilot program under this section to be conducted on a regional, State, or national basis after considering the interests of affected producers and the interests of, and risks to, the Corporation; (B) operate the pilot program, including any modifications of the pilot program, for a period of up to 4 years; (C) extend the time period for the pilot program for additional periods, as determined appropriate by the Corporation; and (D) provide pilot programs that would allow producers— (i) to receive a reduced premium for using whole farm units or single crop units of insurance; and (ii) to cross State and county boundaries to form insurable units. (b) Livestock pilot programs (1) Definition of livestock In this subsection, the term “livestock” includes, but is not limited to, cattle, sheep, swine, goats, and poultry. (2) Programs required Subject to paragraph (7), the Corporation shall conduct two or more pilot programs to evaluate the effectiveness of risk management tools for livestock producers, including the use of futures and options contracts and policies and plans of insurance that protect the interests of livestock producers and that provide— (A) livestock producers with reasonable protection from the financial risks of price or income fluctuations inherent in the production and marketing of livestock; or (B) protection for production losses. (3) Purpose of programs To the maximum extent practicable, the Corporation shall evaluate the greatest number and variety of pilot programs described in paragraph (2) to determine which of the offered risk management tools are best suited to protect livestock producers from the financial risks associated with the production and marketing of livestock. (4) Timing The Corporation shall begin conducting livestock pilot programs under this subsection during fiscal year 2001. (5) Relation to other limitations Any policy or plan of insurance offered under this subsection may be prepared without regard to the limitations of this subchapter. (6) Assistance As part of a pilot program under this subsection, the Corporation may provide reinsurance for policies or plans of insurance and subsidize the purchase of futures and options contracts or policies and plans of insurance offered under the pi...