To amend the Specialty Crops Competitiveness Act of 2004 to provide for seasonal and perishable programs, and for other purposes.
- Sponsor
- Rep. Ruiz, Raul [D-CA-25]
- Committees
- Agriculture Committee (primary)
- Last action
- Apr 27, 2026
Bottom line
This bill creates a new federal payment program to protect domestic seasonal and perishable crop producers from price declines caused by imports, aiming to stabilize their income.
What it actually does
This bill amends the Specialty Crops Competitiveness Act of 2004 by establishing a new program to provide annual crop loss payments to domestic producers of seasonal and perishable crops. Payments are triggered when the national average market price for a crop falls below a defined reference price, and this price decline is determined to be caused by imports of that crop.
Proponents argue
Proponents would argue that this bill provides a crucial safety net for domestic specialty crop producers who are highly vulnerable to market fluctuations and intense competition from imports, ensuring the continued viability of American agriculture, supporting rural economies, and enhancing food security.
Opponents contend
Opponents might contend that this program could distort market signals, potentially leading to overproduction, and could be viewed as a protectionist measure that invites retaliatory tariffs or violates international trade agreements, ultimately harming consumers and other U.S. export sectors.
The bill is very short and can be read quickly, making it accessible for immediate evaluation by an informed reader.
Section 1, adding Title V, Section 501(a) to the Specialty Crops Competitiveness Act of 2004.
Establishment of Seasonal and Perishable Crop Loss Program
This provision establishes a new program, effective for marketing year 2027 and thereafter, to provide annual crop loss payments to producers of seasonal and perishable crops. Payments are made if the effective price (national average market price during the seasonal marketing window) for a crop is less than its reference price (three-year average national market price), and the Secretary determines this loss is caused by imports of that specific crop.
Supporters argue
Supporters argue this program directly addresses the financial precarity faced by specialty crop farmers due to import surges, providing essential stability and preventing farm closures that could otherwise result from intense foreign competition.
Critics contend
Critics may contend that directly linking payments to imports could be perceived as a non-tariff barrier to trade, potentially leading to international trade disputes and higher consumer prices for these goods.
Tradeoffs
This provision balances the goal of supporting domestic agricultural producers against potential implications for international trade relations and the free flow of goods.
Section 1, adding Title V, Section 501(c) and 501(d).
Payment Calculation and Producer Eligibility
The amount of the crop loss payment is calculated by multiplying the difference between the reference price and the effective price by the producer's previous three-year average production for that crop during the same seasonal marketing window. To be eligible for payments, a producer must meet one of two criteria: either have an average adjusted gross income (AGI) of less than $5,000,000 for the three preceding tax years, or derive at least 75 percent of their AGI from farming, ranching, or forestry for the tax year in which payment is sought.
Section 1, adding Title V, Section 501(e).
Definitions for Program Terms
This section defines key terms for the program. A 'seasonal marketing window' is the period a crop is normally marketed in a geographic region, concluding not later than 8 weeks after harvest. A 'reference price' is the national average market price received by producers for domestically produced seasonal and perishable crops over the most recent three marketing seasons. A 'seasonal and perishable crop' is defined as a fresh or chilled specialty crop classified under specific HS2020 tariff codes (0701-0709, 0803-0810), marketed in raw form for consumption without further processing, and normally marketed within 8 weeks of harvesting.