H.R. 7762: Protecting Our Produce Act

The Protecting Our Produce Act aims to support producers of seasonal and perishable crops in the U.S. who suffer from low prices due to imports. This act proposes the establishment of a pilot program under the Specialty Crops Competitiveness Act of 2004 and makes the following key provisions:

Establishment of the Pilot Program

Starting with the marketing year 2025, the Secretary of Agriculture will implement a pilot program to provide financial assistance to eligible producers of certain crops. This assistance is specifically aimed at those producers facing financial difficulties because the market price for their crops falls below a set reference price due to competition from imported goods.

Definitions

• Effective Price: The average market price of a seasonal and perishable crop during its marketing period.
• Reference Price: The average price from the last five years of market prices, excluding the highest and lowest prices during that time.
• Seasonal and Perishable Crops: Crops deemed seasonal and perishable include asparagus, bell peppers, blueberries, cucumbers, and squash that are sold raw and typically consumed within four weeks of harvesting.
• Seasonal Marketing Window: The time frame during which a crop is generally harvested and sold in a specific region.

Program Conditions

The program will provide crop loss payments to producers under two main conditions:

• The effective price of their crop for the year is lower than the established reference price.
• This price drop is caused by an influx of imported crops during the marketing period for that crop.

Producer Eligibility

Producers who wish to receive payments must apply to the Secretary of Agriculture, providing detailed information as required. To qualify for assistance, producers must meet certain income criteria:

• Have an average adjusted gross income of less than $5 million over the last three tax years.
• At least 75% of their adjusted gross income must come from farming, ranching, or forestry.

Payment Calculations

Payments will be determined by:

• Calculating a payment rate based on the difference between the reference price and the effective price of the crop.
• Using the average production of that crop over the previous five years, excluding the highest and lowest production years.

Financial Provisions

The bill authorizes an amount of $200 million per fiscal year to fund this pilot program, lasting for up to five years after the bill's enactment.

Sunset Clause

The pilot program will cease to exist five years post-enactment, unless extended or renewed through further legislation.

Relevant Companies

• CAG (ConAgra Foods): As a major player in the food products industry, ConAgra could be affected by changes in the supply and pricing of seasonal crops.
• SWN (Southwestern Energy): This company might be impacted due to its engagement in agricultural lands and the market conditions shaping around produce prices.