Lafayette Reporter

Sen. John Kennedy (R-La), a member of the Senate Appropriations Committee, has introduced the Quality Loss Adjustment Improvement for Farmers Act. The proposed legislation aims to provide farmers with greater flexibility by enhancing the Federal Crop Insurance Corporation (FCIC)’s capacity to set discounts for farmers who suffer crop loss.

Kennedy stated, “Too often, federal insurers give American farmers short shrift when regional disasters damage their crops. The Quality Loss Adjustment Improvement for Farmers Act would make sure that fickle government policies don’t control the fate of Louisiana’s soybean farmers.”

The bill proposes to grant the FCIC more discretion in reviewing its methodology for determining discounts for farmers who experience crop loss. It also seeks stakeholder input in setting these discounts and mandates a report following the review process. Additionally, it would allow the U.S. Department of Agriculture’s Risk Management Agency (RMA) to establish a regional discount consideration that takes into account extreme weather events and natural disasters.

The FCIC, managed by the RMA, provides federal crop insurance policies to approved insurance providers who then offer coverage to America’s farmers and ranchers. However, current discounts provided to farmers suffering crop loss generally do not reflect actual damages incurred. This discrepancy often leaves farmers without sufficient flexibility to maintain their farms in the long term.

Recent weather-related challenges have highlighted weaknesses in FCIC policies that have significantly affected Louisiana’s soybean farmers. Rep. Julia Letlow (R-La.) is introducing similar legislation in the House of Representatives.

Letlow commented, “Farmers have to deal with extreme conditions and unpredictability during their seasons, and are unfortunately left without the support they need when faced with sudden crop losses... This bill will provide them with additional assistance during their most challenging times moving forward."

The Louisiana Farm Bureau has expressed support for Kennedy’s Quality Loss Adjustment Improvement for Farmers Act. Louisiana Farm Bureau President Jim Harper said, “To see Senator Kennedy and Congresswoman Letlow stick with us through disasters, but then also not forget about those times once the storm clears, is a real testament to their representation of Louisiana Agriculture... The Quality Loss Adjustment Improvement for Farmers Act does just that and is a huge step in the right direction as we enter a season of Farm Bill debate."

The full text of the Quality Loss Adjustment Improvement for Farmers Act can be found here.