HR7762-119

What This Bill Does

The Protecting Our Produce Act amends the Specialty Crops Competitiveness Act of 2004 to create a new seasonal and perishable crop loss pilot program. Beginning with marketing year 2025, the Secretary of Agriculture must provide annual crop loss payments to producers of asparagus, bell peppers, blueberries, cucumbers, and squash in qualifying U.S. regions when the Secretary determines that the crop's effective price is below its reference price and the loss is caused by imports of that crop.

The bill defines effective price as the national average market price during the seasonal marketing window. The reference price is the five-year average national market price during the seasonal marketing window, excluding the highest and lowest years. Eligible producers must apply, have average adjusted gross income below $5 million for the prior three tax years, and derive at least 75 percent of adjusted gross income from farming, ranching, or forestry. Payment amounts equal the payment rate multiplied by the producer's trimmed five-year average production. The payment rate is the difference between the reference price and effective price. The pilot ends five years after enactment, and $200 million per fiscal year is authorized while the pilot operates.

Who Benefits and How

U.S. asparagus producers, bell pepper producers, blueberry producers, cucumber producers, and squash producers benefit because USDA payments offset import-caused price declines during short seasonal marketing windows. Domestic specialty crop growers in regions facing import competition benefit from a payment formula tied to recent production and market prices. State departments of agriculture in specialty crop regions and producer associations benefit from a federal tool targeted at import pressure on perishable crops.

Who Bears the Burden and How

USDA Farm Service Agency payment offices and Agricultural Marketing Service price analysts must define marketing windows, determine regional eligibility, compare effective and reference prices, verify import causation, process applications, and calculate payments. Producers applying for crop loss payments must document income, production, crop type, and eligibility. Federal farm payment accounts bear up to $200 million per fiscal year in authorized program costs. Importers of asparagus, bell peppers, blueberries, cucumbers, and squash may face political and market pressure when imports trigger payments.

Key Provisions

• Creates a USDA seasonal and perishable crop loss pilot program beginning with marketing year 2025.
• Covers asparagus, bell pepper, blueberry, cucumber, and squash crops marketed raw and normally sold within four weeks after harvest.
• Requires annual payments when effective prices fall below reference prices because of imports.
• Limits producer eligibility to applicants below a $5 million adjusted gross income threshold with at least 75 percent of income from farming, ranching, or forestry.
• Defines payment amounts using the payment rate and trimmed five-year average producer output.
• Defines the payment rate as the difference between reference price and effective price.
• Terminates the pilot five years after enactment.
• Authorizes $200 million per fiscal year for the pilot.