H.R.292 - Grape Research And Protection Expansion Act; GRAPE Act (119th Congress)
Summary
H.R. 292, the Grape Research And Protection Expansion Act (GRAPE Act), directs the Federal Crop Insurance Corporation (FCIC) to research and develop a policy insuring table, wine, and juice grapes against losses from freeze events. The bill mandates the FCIC to either conduct this research internally or contract with qualified entities. It also requires the FCIC to make the insurance policy available within 18 months of the Act's enactment, provided certain requirements are met, and to submit a report on the research and policies to relevant congressional committees within two years.
Expected Effects
The GRAPE Act aims to provide financial protection to grape producers against freeze-related losses. This will likely lead to increased stability in the grape industry and potentially encourage further investment in grape production. The Act also mandates reporting to Congress, ensuring oversight and accountability in the policy's development and implementation.
Potential Benefits
- Financial Security for Grape Producers: Provides a safety net against economic losses due to freeze events.
- Industry Stability: Reduces the risk associated with grape farming, potentially stabilizing the market.
- Encourages Investment: May incentivize further investment in grape production and related industries.
- Data Collection and Analysis: The required research and reporting will generate valuable data on freeze-related risks and insurance policy effectiveness.
- Supports Agricultural Viability: Helps maintain the economic viability of grape farming, an important sector in certain regions.
Potential Disadvantages
- Potential Costs to Taxpayers: Research, development, and implementation of the insurance policy will require government funding.
- Complexity of Implementation: Designing and administering a fair and effective insurance policy for freeze events can be complex.
- Risk of Moral Hazard: Insured grape producers might be less incentivized to implement freeze-prevention measures.
- Limited Scope: The Act focuses solely on grape crops, potentially neglecting other agricultural sectors vulnerable to similar risks.
- Administrative Burden: The FCIC will face an increased administrative burden in managing the new research and insurance program.
Constitutional Alignment
The GRAPE Act appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to regulate commerce (Article I, Section 8), which includes agricultural products. The Act's focus on crop insurance falls under Congress's authority to support and regulate agriculture, promoting stability and economic well-being within the sector. The necessary and proper clause (Article I, Section 8) also allows Congress to enact laws necessary for executing its enumerated powers, such as providing crop insurance.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).