Quality Loss Adjustment Improvement for Farmers Act
Key claim: The bill would require the Federal Crop Insurance Corporation to review crop insurance quality loss adjustments every five years and establish regional discount factors for disaster-affected soybeans.
Abstract
(HR8436 · 118th Congress) 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. Latest action (2024-09-03): Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.
Why this matters
Quality loss adjustments affect how crop insurance accounts for reduced crop value, making the proposed review cycle and regional soybean discount factors relevant to farmers’ disaster-related claims. The bill is introduced, not enacted; the finding establishes no change in current payments or demonstrated effect on consumer food prices.