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Quality Loss Adjustment Improvement for Farmers Act
4/10/2025, 1:53 AM
Summary of Bill S 1117
The main purpose of this bill is to ensure that farmers who experience quality losses in their crops are adequately compensated through the federal crop insurance program. The bill proposes modifications to the current provision in order to make the coverage more effective and accessible to farmers in need.
Specifically, the bill includes provisions that would expand the types of quality losses that are eligible for coverage, as well as increase the level of compensation available to farmers who experience these losses. Additionally, the bill aims to streamline the process for farmers to apply for and receive quality loss adjustment coverage, making it easier for them to access the support they need. Overall, Bill 119 s 1117 seeks to improve the quality loss adjustment coverage provided to farmers under the Federal Crop Insurance Act, ensuring that they are adequately protected in the event of quality losses in their crops. This bill is an important step towards supporting farmers and ensuring the stability of the agricultural industry in the United States.
Congressional Summary of S 1117
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.
