Quality Loss Adjustment Improvement for Farmers Act
This 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.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8436 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 8436
To amend the Federal Crop Insurance Act to modify a provision relating
to quality loss adjustment coverage.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 16, 2024
Ms. Letlow introduced the following bill; which was referred to the
Committee on Agriculture
_______________________________________________________________________
A BILL
To amend the Federal Crop Insurance Act to modify a provision relating
to quality loss adjustment coverage.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Quality Loss Adjustment Improvement
for Farmers Act''.
SEC. 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 pursuant to 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); or
``(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).''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Agriculture.
Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.
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