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Bill

S 4860

CHILE Act of 2026

119th Congress Introduced by Michael Bennet and 7 co-sponsors

Provides direct, pre-event emergency payments to specialty crop producers based on prior sales and a Secretary-set factor to offset losses from adverse events.

Introduced in Senate
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WeVote Research Nonpartisan
Bill Summary · S 4860

Summary of S.4860 — CHILE Act of 2026

Purpose

  • Introduces a new framework to provide direct emergency financial assistance to producers of specialty crops (as defined by the Specialty Crops Competitiveness Act of 2004) when they are affected by adverse events such as economic crises or market disruptions.
  • The bill is targeted at establishing a dedicated, expedited mechanism within the existing federal agriculture program structure to support specialty crop producers during downturns.

Key Provisions

  • Section 197: Specialty Crop Emergency Assistance Framework

    • Defines “specialty crop” consistent with the 2004 Specialty Crops Competitiveness Act.
    • Requires the Secretary of Agriculture to establish a framework to deliver direct assistance to specialty crop producers whose production is impacted by an adverse event.
    • Calculation of payments (subsection c):
    • Payments are based on the product obtained by multiplying: 1) The producer’s sales of specialty crops for the calendar year preceding the adverse event (or the average sales over a set of prior years). 2) A payment factor determined by the Secretary, designed to address losses from the adverse event.
    • Considerations in providing assistance (subsection d):
    • Higher value of specialty crops relative to other crops.
    • Higher input costs required for specialty crops.
    • Diverse legal and business structures used by specialty crop producers.
    • Limitations and eligibility (subsection e):
    • Total payments to any person or entity (excluding a qualified pass-through entity) may not exceed the applicable limit set in the Food Security Act, as adjusted.
    • An exception for certain high-grossing producers: if at least 75% of average income derives from farming, ranching, or silviculture, the cap can be adjusted but cannot be less than $900,000.
    • Applications and eligibility: existing provisions under the Food Security Act of 1985 (e.g., notification of interests, eligibility determinations, and denials) apply to specialty crop producers in the same manner as they apply to covered commodities, with some alignment to the specific subsection (b)–(d) provisions.
    • Default administration (subsection f): The framework can be administered through the Commodity Credit Corporation Charter Act authority (e.g., section 5), ensuring the program can operate within established USDA authorities.
  • Section on Appropriation

    • Funding: $5,000,000,000 is appropriated to the Secretary of Agriculture for fiscal year 2027, available until expended, to provide direct specialty crop assistance under the framework established by Section 197.

Affected Parties

  • Primary: Producers of specialty crops (as defined by federal statute).
  • Secondary: Entities involved in farming, ranching, silviculture, and related farm businesses that rely on specialty crops, including those with diverse legal/business structures.
  • Federal agencies: U.S. Department of Agriculture (USDA), particularly the Secretary of Agriculture, with potential use of the Commodity Credit Corporation authorities for administration.

Process and Timeline Considerations

  • The framework would be established and implemented by the Secretary of Agriculture after enactment.
  • The framework looks at prior-year sales data (or multi-year averages) to determine payment calculations, tying assistance to pre-event performance.
  • A separate, explicit appropriation is provided for 2027; however, the framework is designed to remain available for ongoing use “until expended” within that appropriation.
  • General administrative provisions align with existing USDA/FAIR Act and Food Security Act authorities for eligibility determinations, notifications, and denials.

Sponsor and Support

  • Introduced in the Senate on June 23, 2026.
  • Principal sponsor: Senator Luján (joined by several co-sponsors including Bennet, King, Warnock, Wyden, Schiff, Booker, Hickenlooper, and Slotkin).

Practical Impact

  • Establishes a dedicated safety net for specialty crop producers during events that disrupt markets or reduce demand/prices, complementing existing crop disaster programs.
  • Aims to reflect the unique economics of specialty crops (higher values, greater input costs, varied business structures) in the design of eligibility and benefit levels.
  • Provides a substantial federal funding allocation to ensure rapid and direct payments to affected producers in 2027, with ongoing applicability through the framework.

Compiled from official sources — confirm details with the bill’s official record.

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