To amend the Specialty Crops Competitiveness Act of 2004 to provide for seasonal and perishable programs, and for other purposes.
- Bill Number
- H.R. 8525
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Agriculture and Food
- Status
- Introduced
- Latest Action
- 2026-04-27: Referred to the House Committee on Agriculture.
- Last Updated
- 2026-05-08T20:29:16Z
AI-Generated Summary
Purpose
This bill amends the Specialty Crops Competitiveness Act of 2004 to create a new program providing financial payments to U.S. producers of certain seasonal and perishable crops when low prices are caused by imports, aiming to support domestic growers during vulnerable marketing periods.
Key Provisions
- Program Launch and Trigger: Starting in marketing year 2027, the Secretary of Agriculture must provide annual crop loss payments to eligible producers if:
- The effective price (national average market price during the seasonal marketing window) falls below the reference price (average price from the prior three marketing seasons).
- The price drop is due to imports.
- Geographic Coverage: Limited to U.S. regions where the crop is grown and normally harvested/shipped within a defined seasonal window.
- Payment Calculation: Payments equal the difference between the reference price and effective price, multiplied by the farm's average production over the previous three years for that crop and window.
- Eligibility Requirements:
- Producers with average adjusted gross income (AGI) under $5,000,000 over the prior three tax years, or
- Producers deriving at least 75% of AGI from farming, ranching, or forestry.
- Covered Crops: Fresh or chilled specialty crops (e.g., certain vegetables and fruits classified under specific HS2020 tariff codes like 0701-0709 for vegetables or 0803-0810 for fruits), sold raw without processing, and marketed within 8 weeks of harvest.
- Seasonal Marketing Window: The normal marketing season, ending no later than 8 weeks after harvest.
Significant Changes to Existing Law
- Adds a new Title V—Seasonal and Perishable Programs to the Specialty Crops Competitiveness Act of 2004.
- Introduces a first-of-its-kind targeted payment program for import-related losses on specific perishable crops, not previously covered under existing crop insurance or disaster programs.
Potential Impacts
- Government Agencies: The U.S. Department of Agriculture (USDA) gains responsibility for determining eligibility, calculating prices/payments, and administering the program annually, potentially increasing administrative workload and budget needs.
- Citizens/Producers: Provides financial relief to domestic growers of vulnerable crops (e.g., fresh produce), helping stabilize income during import surges, but payments come from federal funds (taxpayer-supported).
- International Relations: May strain trade relations by effectively subsidizing U.S. producers against foreign imports, potentially prompting retaliatory measures or disputes under trade agreements like USMCA.
Main Stakeholders Affected
- Primary Beneficiaries: Producers/farmers of seasonal perishable crops (e.g., fresh vegetables/fruits) in qualifying U.S. regions.
- Administrators: U.S. Department of Agriculture (Secretary and staff).
- Others: Taxpayers funding payments; importers and foreign exporters of competing crops; consumers potentially facing stabilized or higher domestic prices.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on USDA's discretion to verify import causation and price data; eligibility tied to income limits to target smaller/mid-sized operations, avoiding broad entitlements.
- Constitutional: Involves Congress's spending power under Article I; no apparent First Amendment or due process issues.
- Political: Protectionist measure favoring agriculture amid trade concerns; could spark debates on subsidies vs. free trade, with support from farming states and opposition from free-trade advocates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-04-27: Referred to the House Committee on Agriculture.
- 2026-04-27: Introduced in House
- 2026-04-27: Introduced in House
Bill Versions
- To amend the Specialty Crops Competitiveness Act of 2004 to provide for seasonal and perishable programs, and for other purposes. — issued 2026-04-27 — PDF (5 pages)