S. 1117 — Quality Loss Adjustment Improvement for Farmers Act

This section revises the review process for quality loss adjustment procedures under the Federal Crop Insurance Act (i.e., procedures used by the Federal Crop Insurance Corporation to determine indemnity payments for lower-quality crops damaged by adverse weather or other perils). Specifically, it requires the Corporation to contract for such reviews beginning in calendar year 2025 and every five years thereafter (replacing the prior one-time review required by the 2004 reinsurance year), with each review completed within one year, including engagement with regionally diverse stakeholders for covered commodities; bases any resulting procedure changes on these reviews; and requires a report to the Senate and House Agriculture Committees describing findings, changes, and stakeholder engagement. The section also adds a new paragraph establishing State- or regional-level discount factors for soybeans in the event of (1) a disaster declaration by the USDA Secretary, (2) a major disaster declaration by the President under the Stafford Act (42 U.S.C. 5170), or (3) a presidential emergency declaration under that Act (42 U.S.C. 5191), or the occurrence of a salvage market for soybeans. (Thus, these factors reflect average quality discounts applied to local or regional soybean market prices and must be incorporated into the periodic reviews and congressional reports.)