H.R. 8525: To amend the Specialty Crops Competitiveness Act of 2004 to provide for seasonal and perishable programs, and for other purposes.

This bill proposes amendments to the Specialty Crops Competitiveness Act of 2004, focusing on support for producers of seasonal and perishable crops. Here is a summary of its main components:

1. Introduction of Seasonal and Perishable Programs

The bill establishes new programs aimed at assisting producers of seasonal and perishable crops beginning in the marketing year 2027 and onward.

2. Crop Loss Payments

The key feature of the bill is the creation of a Seasonal and Perishable Crop Loss Program. Under this program:

• The Secretary of Agriculture may provide annual payments to eligible producers if:
• The effective price of a crop falls below a set reference price.
• This price drop is attributed to imports of the same crop.

3. Geographic Coverage

The payments will be available in regions where seasonal and perishable crops are grown during specific marketing periods and where normal harvesting and shipping of these crops occur.

4. Definition of Effective Price

The effective price is determined as the national average market price for the crop during its designated seasonal marketing period.

5. Payment Calculation

If payments are to be distributed, the amount for each crop will be calculated based on:

• The payment rate, defined as the difference between the reference price and the effective price.
• The average production of the crop over the previous three years during the same marketing window.

6. Eligibility Criteria

Producers must meet certain eligibility requirements to receive payments:

• Having an average adjusted gross income of less than $5 million for the three tax years preceding the application year.
• Or, deriving at least 75% of adjusted gross income from farming, ranching, or forestry.

7. Definitions

Several key terms are defined in the bill to clarify its provisions:

• Seasonal marketing window: This refers to the period in which the crops are usually marketed and ends no later than eight weeks after the harvest season.
• Reference price: The average market price for domestically produced seasonal and perishable crops over the last three marketing seasons.
• Seasonal and perishable crop: Defined as fresh or chilled specialty crops that are marketed in raw form and are usually sold within eight weeks of harvesting.

8. Role of the Secretary of Agriculture

The bill designates the Secretary of Agriculture as the authority responsible for implementing these programs and making determinations regarding eligibility and payment calculations.

Relevant Companies

None found.