Pilot program to review effectiveness of coverage penalty

The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is further amended by inserting after section 508D the following: 508E. Pilot program to review effectiveness of coverage penalty (a) In general Effective beginning with the 2027 crop year, the Risk Management Agency and the Corporation shall establish a pilot program to evaluate the effectiveness of the reduction in benefits applied to corn and other crops, as determined by the Corporation, planted during the late planting period (as defined in section 457.8 of title 7, Code of Federal Regulations (or successor regulation)). (b) Location and duration of pilot The pilot program established under subsection (a) shall— (1) be conducted in not less than 10 counties located within or adjacent to the North Plains Groundwater Conservation District or the Panhandle Groundwater Conservation District in the State of Texas; and (2) operate for a period of not less than four 4 crop years. (c) Evaluation In carrying out the pilot program established under subsection (a), the Risk Management Agency and the Corporation shall— (1) suspend any reduction to the insurance guarantee applied to an insurance policy for a crop that is planted during the late planting period; (2) gather and analyze data to determine if the number of days beyond the final plant date in which a crop was planted during the late planting period correlates with a decrease in crop yields; and (3) determine if planting a crop after the final plant date results in reduced usage of irrigation from the Ogallala Aquifer. (d) Report required Not later than 90 days after the last day of crop year 2031, the Risk Management Agency and the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Forestry, and Nutrition of the Senate a report that includes— (1) a summary of the results of the pilot program established under subsection (a); (2) an analysis of the correlation between planting date and final yields; and (3) any changes to existing policies that the Corporation intends to make as a result of the information obtained during the pilot program. (e) Partnerships Of the amounts made available in section 522(e)(2)(A)(ii), the Corporation may use not more than $200,000 to enter into a partnership or cooperative agreement with a nonprofit organization, State agency, or public university that is familiar with agricultural production in the region described in subsection (b)(1) to conduct the research and evaluation required under paragraphs (2) and (3) of subsection (c)..