Quality Loss Adjustment Improvement for Farmers Act
Quality Loss Adjustment Improvement for Farmers Act
Plain Language Summary
# Quality Loss Adjustment Improvement for Farmers Act - Summary **What the bill would do:** This bill would require the Federal Crop Insurance Corporation (FCIC), which runs the federal crop insurance program, to regularly review and update how it handles "quality losses" for farmers. Quality losses occur when crops are damaged or don't meet market standards due to weather, pests, or other problems beyond a farmer's control. The bill specifically directs the FCIC to conduct these reviews at least every five years and make improvements based on what it finds. It also calls for establishing regional discount factors specifically for soybeans, which would adjust insurance payouts based on regional conditions. **Who it affects:** This bill primarily affects farmers who purchase federal crop insurance, as well as the agricultural industry more broadly.
The changes could impact insurance payouts farmers receive when their crops suffer quality losses. The bill also requires input from industry stakeholders across different regions to ensure the review process considers local agricultural conditions. **Current status:** The bill (S. 1117) is currently in committee and has not yet been voted on by the full Senate. It was introduced by Senator John Kennedy (R-LA) in the 119th Congress.
CRS Official Summary
Quality Loss Adjustment Improvement for Farmers ActThis bill directs the Federal Crop Insurance Corporation (FCIC) to review and revise quality loss adjustment coverage and provides for the establishment of a regional discount factor for soybeans, as needed.The FCIC is a government corporation that finances and administers the federal crop insurance program (FCIP) operations. Under the FCIP, farmers may purchase insurance coverage against financial losses caused by certain adverse growing and market conditions, including for quality losses. The federal government subsidizes the premiums that farmers pay for these insurance policies.The bill directs the FCIC to contract with a qualified entity to conduct a review at least once every five years of the quality loss adjustment procedures. Based on each review, the FCIC must make adjustments to the procedures. Each review must include engagement from regionally diverse industry stakeholders for each agricultural commodity for which a quality loss adjustment is offered.The bill also directs the FCIC, in certain circumstances, to establish a state or regional discount factor for soybeans to reflect the average quality discounts applied to the local or regional market prices of the soybean crop. The FCIC must take this action in the event of (1) specific emergency or disaster declarations for a state or region, or (2) the occurrence of a salvage market for soybeans in a state or region.
Latest Action
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.