S 2598 — Whole Farm Revenue Protection Program Improvement Act of 2023

(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...