The United States Department of Agriculture (USDA) has created the Foundation for Food and Agricultural Research (FFAR).
The new foundation, which will operate as a non-profit body, will take the help of public and private resources to increase the scientific and technological research, which is said to boost the country's agricultural economy.
It was authorized by Congress as part of the 2014 Farm Bill.
Congress has provided $200m for the foundation, which needs to be matched by non-federal funds as the foundation identifies and approves projects.
USDA secretary Tom Vilsack said the studies have shown that every dollar invested in agricultural research creates $20 in economic activity.
"Investments in innovation made over the past several decades have developed new products and new procedures that have been critical to the continued growth of American agriculture," Vilsack added.
