Pilot program to review effectiveness of coverage penalty

The Federal Crop Insurance Act is amended by inserting after section 508D (7 U.S.C. 1508d) the following: 508E. Pilot program to review effectiveness of coverage penalty (a) In general The Risk Management Agency and the Corporation shall establish a pilot program (referred to in this section as the pilot program), to be in effect beginning with the 2027 crop year, 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 a successor regulation)). (b) Location The pilot program shall be conducted in not less than 4 counties located within or adjacent to the North Plains Groundwater Conservation District or the Panhandle Groundwater Conservation District in the State of Texas. (c) Duration The pilot program shall operate for a period of not less than 4 crop years. (d) Evaluation In carrying out the pilot program, 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. (e) Partnerships Of the amounts made available under 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 area described in subsection (b) to conduct the research and evaluation required under paragraphs (2) and (3) of subsection (d). (f) Report 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, Forestry, and Nutrition of the Senate and the Committee on Agriculture of the House of Representatives a report that includes— (1) a summary of the results of the pilot program; (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..