S. 4860Senate119th Congress (2025-2027)In Committee

CHILE Act of 2026

Introduced June 23, 2026

AI-Generated Summary

Updated June 27, 2026 at 4:12 AM UTC

The CHILE Act of 2026 amends the 1996 Federal Agriculture Improvement and Reform Act to establish a new program that provides emergency financial assistance to producers of specialty crops when they suffer losses from events like market disruptions. It defines "specialty crop" by reference to existing law and sets up a payment formula based on past sales and a Secretary‑determined factor. The program is funded with $5 billion for fiscal year 2027 and includes payment limits with special provisions for larger farming operations.

Key Provisions

  • Adds a new Section 197 to the 1996 Farm Bill creating a specialty‑crop emergency assistance framework.
  • The Secretary of Agriculture may give direct payments to specialty‑crop producers whose production is hit by an adverse event, such as an economic crisis or market disruption.
  • Payments are calculated by multiplying the producer’s prior‑year (or average prior‑year) specialty‑crop sales by a payment factor set by the Secretary, subject to available funds.
  • When determining assistance, the Secretary must consider the higher market value of specialty crops, their higher input costs, and the varied business structures of producers.
  • A cap limits total payments a producer can receive, but farms where at least 75% of income comes from farming can receive a higher amount set by the Secretary, but not less than $900,000.
  • The bill appropriates $5 billion for FY 2027 to fund these specialty‑crop emergency payments.

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

June 23, 2026

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SenateIntro Referral

Introduced in Senate

June 23, 2026

SenateIntro Referral

Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

June 23, 2026

Bill Text

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Introduced in SenateIssued June 23, 2026

II

119th CONGRESS

2d Session

S. 4860

IN THE SENATE OF THE UNITED STATES

June 23, 2026

Mr. Luján (for himself, Ms. Slotkin, Mr. Warnock, Mr. Bennet, Mr. Booker, Mr. Fetterman, Mr. Wyden, and Mr. Hickenlooper) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To amend the Federal Agriculture Improvement and Reform Act of 1996 to establish a specialty crop emergency assistance framework, and for other purposes.

1.

Short title

This Act may be cited as the Cultivating Horticultural Innovation in Local Economies Act of 2026 or the CHILE Act of 2026.

2.

Specialty crop emergency assistance framework

(a)

In general

The Federal Agriculture Improvement and Reform Act of 1996 is amended by inserting after section 196 (7 U.S.C. 7333) the following:

197.

Specialty crop emergency assistance framework

(a)

Definition of specialty crop

In this section, the term specialty crop has the meaning given the term in section 3 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108–465).

(b)

Framework

The Secretary shall establish a framework to provide direct assistance to producers of specialty crops the production of which is impacted by an adverse event (including an economic crisis or market disruption), as determined by the Secretary, in accordance with this section.

(c)

Payment calculation

In determining a payment calculation for purposes of direct assistance to a producer of specialty crops under subsection (b), the Secretary shall calculate payments based on the product obtained by multiplying—

(1)

the producer’s sales of specialty crops for a calendar year that precedes the year in which the adverse event described in that subsection occurred or the average of those sales over a set of consecutive calendar years that precedes the year in which that adverse event occurred, as determined by the Secretary; by

(2)

a payment factor the Secretary determines, subject to the availability of funds, to address losses of those specialty crops from that adverse event.

(d)

Special rules

Subject to subsection (e), in providing direct assistance pursuant to this section, the Secretary shall consider—

(1)

the higher value of specialty crops relative to other crops;

(2)

the greater input costs required to grow specialty crops relative to other crops; and

(3)

the diverse types of legal entities and business structures used by specialty crop producers.

(e)

Limitations

(1)

Total amount

(A)

In general

Except as provided in subparagraph (B), the total amount of payments received, directly or indirectly, by a person or legal entity (except a qualified pass through entity) (as those terms are defined in section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a))) for any crop year under this section may not exceed the amount specified in subsection (b) of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308), as adjusted pursuant to subsection (i) of that section.

(B)

Exception

In the case of a person or legal entity with an average gross income (as calculated under subparagraph (B) of section 1001D(b)(4) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)(4))) for which greater than or equal to 75 percent of the average derives from farming, ranching, or silviculture activities (as defined in subparagraph (A) of that section)—

(i)

subparagraph (A) of this paragraph shall not apply; and

(ii)

the total maximum amount of payments received, directly or indirectly, by that person or legal entity for any crop year under this section shall be set by the Secretary, except that amount may not be less than $900,000.

(2)

Notification of interests; eligibility; denials

Sections 1001A(a), 1001B, and 1001C of the Food Security Act of 1985 (7 U.S.C. 1308–1(a), 1308–2, 1308–3) shall apply to a producer of a specialty crop under this section in the same manner as those sections apply to a person or legal entity with respect to a covered commodity, except to the extent those sections relate to the application of subsections (b) through (d) of section 1001A of that Act (7 U.S.C. 1308–1).

(f)

Default structure

The Secretary shall administer any program to deliver direct assistance to producers of specialty crops described in subsection (b), including any direct assistance administered under the authority of section 5 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714c), through the framework established under subsection (b).

.

(b)

Appropriation

There is appropriated to the Secretary of Agriculture, out of any amounts in the Treasury not otherwise appropriated, $5,000,000,000 for fiscal year 2027, to remain available until expended, to provide direct assistance to producers of specialty crops pursuant to section 197 of the Federal Agriculture Improvement and Reform Act of 1996 (as added by subsection (a)).