S 1117
Quality Loss Adjustment Improvement for Farmers Act
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Bill overview
This bill, the Quality Loss Adjustment Improvement for Farmers Act, aims to improve the quality loss adjustment coverage offered through the federal crop insurance program. It requires the Federal Crop Insurance Corporation (FCIC) to periodically review and update its quality loss adjustment procedures, ensuring they are relevant and effective. The bill also allows the FCIC to establish regional discount factors for soybeans in response to specific disasters or salvage markets, reflecting local market quality conditions.
Key provisions
- Requires the FCIC to conduct a periodic review (every 5 years) of quality loss adjustment procedures.
- Mandates stakeholder engagement from regionally diverse industry groups during each review.
- Requires the FCIC to submit a report detailing review findings, changes to procedures, and stakeholder engagement.
- Defines a ‘covered declaration’ for the purpose of establishing soybean discount factors.
- Authorizes the FCIC to establish state or regional discount factors for soybeans in response to disasters or salvage markets.
- Specifies that discount factors should reflect average quality discounts applied to local or regional soybean market prices.
- Requires reporting of discount factors in periodic reviews and accompanying reports.
- Establishes a timeline for the initial review, beginning in 2025.
Who is affected
- Farmers
- Federal Crop Insurance Corporation (FCIC)
- Soybean producers
- Agricultural industry
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119th CONGRESS — 1st Session
S. 1117
IN THE SENATE OF THE UNITED STATES
A BILL
To amend the Federal Crop Insurance Act to modify a provision relating to quality loss adjustment coverage.
This Act may be cited as the Quality Loss Adjustment Improvement for Farmers Act
.
Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 1508(m)) is amended—
in paragraph (3)—
by striking subparagraph (A) and inserting the following:
Beginning in calendar year 2025, 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.
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
;
by redesignating subparagraph (B) as subparagraph (C);
by inserting after subparagraph (A) the following:
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.
by adding at the end the following:
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—
findings from that review;
changes to the quality loss adjustment procedures; and
the stakeholder engagement for that review pursuant to subparagraph (B).
by adding at the end the following:
In this paragraph, the term covered declaration means—
a disaster declaration by the Secretary;
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
an emergency declared by the President under section 501 of that Act (42 U.S.C. 5191).
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.
Any State or regional discount factor established under subparagraph (B) shall be included in—
the applicable periodic review conducted under paragraph (3)(A); and
the report described in paragraph (3)(D).