beginning farmer or rancher
(7) Whole farm diversified risk management insurance plan (A) In general Unless the Corporation approves a whole farm insurance plan, similar to the plan described in this paragraph, to be available to producers for the 2016 reinsurance year, the Corporation shall conduct activities or enter into contracts to carry out research and development to develop a whole farm risk management insurance plan, with a liability limitation of $1,500,000, that allows a diversified crop or livestock producer the option to qualify for an indemnity if actual gross farm revenue is below 85 percent of the average gross farm revenue or the expected gross farm revenue that can reasonably be expected of the producer, as determined by the Corporation. (B) Eligible producers The Corporation shall permit producers (including direct-to-consumer marketers and producers servicing local and regional and farm identity-preserved markets) who produce multiple agricultural commodities, including specialty crops, industrial crops, livestock, and aquaculture products, to participate in the plan developed under subparagraph (A) in lieu of any other plan under this subchapter. (C) Diversification The Corporation may provide diversification-based additional coverage payment rates, premium discounts, or other enhanced benefits in recognition of the risk management benefits of crop and livestock diversification strategies for producers that— (i) grow multiple crops; or (ii) may have income from the production of livestock that uses a crop grown on the farm. (D) Market readiness The Corporation may include coverage for the value of any packing, packaging, or any other similar on-farm activity the Corporation determines to be the minimum required in order to remove the commodity from the field. (E) Review of modifications to improve effectiveness (i) In general Not later than 18 months after December 20, 2018 — (I) the Corporation shall hold stakeholder meetings to solicit producer and agent feedback; and (II) the Board shall— (aa) review procedures and paperwork requirements on agents and producers; and (bb) modify procedures and requirements, as appropriate, to decrease burdens and increase flexibility and effectiveness. (ii) Factors In carrying out items (aa) and (bb) of subclause (i)(II), the Board shall consider— (I) removing caps on nursery and livestock production; (II) allowing a waiver to expand operations, especially for small and beginning farmers; (III) minimizing paperwork for producers and agents; (IV) implementing an option for producers with less than $1,000,000 in gross revenue that requires significantly less paperwork and recordkeeping; (V) developing and using alternative records such as time-stamped photographs or technology applications to document planting and production history; (VI) treating the different growth stages of aquaculture species as separate crops to recognize the difference in perils at different phases of growth; (VII) moderating the impacts of disaster years on historic revenue, such as— (aa) using an average of the historic and projected revenue; (bb) counting indemnities as historic revenue for loss years; (cc) counting payments under section 7333 of this title as historic revenue for loss years; or (dd) using an assigned yield floor similar to the limitation described in section 1508(g)(6)(A)(i) of this title , as determined by the Secretary; (VIII) improving agent training and outreach to underserved regions and sectors such as small dairy farms; and (IX) providing coverage and indemnification of insurable losses— (aa) after the losses exceed the deductible; and (bb) up to the maximum amount of total coverage. (F) Beginning farmer or rancher defined Notwithstanding section 1502(b)(3) of this title , with respect to plans described under this paragraph, the term “beginning farmer or rancher” means a farmer or rancher who has not actively operated and managed a farm or ranch with a bona fide insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or sharecropper for more than 10 crop years.