Quality Loss Adjustment Improvement for Farmers Act

Bill: 118-s-4353
Sponsor: full_name: Sen. Kennedy, John [R-LA]
Introduced: 2024-05-16
Policy area: Agriculture and Food
Latest action: action_date: 2024-05-16
text: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

Summaries:
action_date: 2024-05-16
action_desc: Introduced in Senate
text: <p><strong>Quality Loss Adjustment Improvement for Farmers Act</strong></p><p>This bill directs the&nbsp;Federal Crop Insurance Corporation (FCIC) to review and revise quality loss adjustment coverage&nbsp;and provides for the establishment of a regional discount factor for soybeans, as needed.</p><p>The FCIC is a government corporation that&nbsp;finances and administers the federal crop insurance program (FCIP) operations. Under the FCIP, farmers may&nbsp;purchase insurance coverage against financial losses&nbsp;caused by certain adverse growing and market conditions,&nbsp;including for quality losses. The federal government subsidizes the premiums that farmers pay for these insurance policies.&nbsp;</p><p>The bill directs the FCIC to contract with a qualified entity to conduct a review at least once every five years&nbsp;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.</p><p>The bill also directs the&nbsp;FCIC, in certain circumstances, to establish a&nbsp;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&nbsp;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.</p>

tv_txt: II 118th CONGRESS 2d Session S. 4353 IN THE SENATE OF THE UNITED STATES May 16, 2024 Mr. Kennedy introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To amend the Federal Crop Insurance Act to modify a provision relating to quality loss adjustment coverage.

1. Short title This Act may be cited as the Quality Loss Adjustment Improvement for Farmers Act . 2. Quality loss adjustment coverage Section 508(m) of the Federal Crop Insurance Act ( 7 U.S.C. 1508(m) ) is amended— (1) in paragraph (3)— (A) by striking subparagraph (A) and inserting the following: (A) Periodic review Beginning in calendar year 2024, and once every 5 years thereafter, the Corporation shall contract with a qualified person to conduct a review of the quality loss adjustment procedures of the Corporation, each of which shall be completed not later than 1 year after the date of commencement of the review. ; (B) in subparagraph (B), by striking Effective beginning not later than the 2004 reinsurance year, based on the review, the Corporation and inserting Based on each review conducted under subparagraph (A), the Corporation ; (C) by redesignating subparagraph (B) as subparagraph (C); (D) by inserting after subparagraph (A) the following: (B) Stakeholder engagement Each review under subparagraph (A) shall include engagement from regionally diverse industry stakeholders for each agricultural commodity for which a quality loss adjustment is offered. ; and (E) by adding at the end the following: (D) Report On the completion of each review under subparagraph (A), the Corporation shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report that describes— (i) findings from that review; (ii) changes to the quality loss adjustment procedures; and (iii) the stakeholder engagement for that review under subparagraph (B). ; and (2) by adding at the end the following: (7) Regional discount factors for soybeans (A) Definition of covered declaration In this paragraph, the term covered declaration means— (i) a disaster declaration by the Secretary; (ii) a major disaster declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 ); and (iii) an emergency declared by the President under section 501 of that Act ( 42 U.S.C. 5191 ). (B) Discount factor In the event of a covered declaration for a State or region, or the occurrence of a salvage market for soybeans in a State or region, the Corporation shall establish a State or regional discount factor, as applicable, to reflect the average quality discounts applied to the local or regional market prices of the soybean crop. (C) Reporting requirement Any State or regional discount factor established under subparagraph (B) shall be included in— (i) the applicable periodic review conducted under paragraph (3)(A); and (ii) the report described in paragraph (3)(D). .