Grain Quality Improvement Act of 1986

(Measure passed House, amended)

Grain Quality Improvement Act of 1986 - Amends the United States Grain Standards Act to state that: (1) it is U.S. policy to provide quality grain to domestic and foreign buyers; (2) the primary objective of the Official United States Standards for Grain is to certify grain quality as accurately as possible; and (3) U.S. grain standards shall provide the framework necessary for the markets to establish quality improvement incentives.

Prohibits, as of May 1, 1987, the recombination of dockage or foreign material (including dust) with any grain marketed in or exported from the United States. Stipulates that such prohibitions shall not be construed to bar: (1) the treatment of grain to destroy or prevent injurious fungi and insects; (2) any marketing of dockage or foreign material removed from grain which is marketed separately and uncombined with whole grain, or as part of a processed food for livestock, poultry, or fish; (3) the blending of similar grains to adjust mixture quality; (4) the recombination of broken corn or kernels with grain of the same type; (5) effective for the period ending December 31, 1987, the recombination of dockage or foreign material removed at an export loading facility from grain to be shipped as a cargo under one export inspection certificate; (6) the addition of identification material; and (7) any other addition determined by the Secretary of Agriculture as ensuring U.S. export grain quality.

Authorizes the Secretary, effective through December 31, 1987, to exempt from such prohibitions the last handling of grain in a final domestic sale and shipment when in the public interest.

Directs the Secretary, subject to appropriation of funds, to compensate a producer, grain merchant, grain processor, or grain exporter for loss of value of inventory grain if the person can show that such loss resulted from a grain classification change. States that compensation shall be paid only on the inventory held on the effective date of the classification change.

Directs the Administrator of the Federal Grain Inspection Service to issue a final rulemaking within six months regarding insect infestation of grain.

Directs the Secretary: (1) in consultation with farmers and members of the grain industry, to study the feasibility of adjusting the Commodity Credit Corporation grain premium and discount schedules in order to encourage the delivery, storage, and export of high quality grain; and (2) report to the appropriate congressional committees within 180 days.

Directs the Administrator to: (1) publish and seek public comment on H.R. 5354 (Optimal Grain Grading Act); and (2) report to the Congress by May 1, 1987.

Provides for a Federal Grain Inspection Service and Agricultural Research Service study of the need for an availability of uniform end-use value tests for grain including an ongoing review of such tests that are of economic value to buyers. Directs the Administrator: (1) to the extent practicable, to revise official grain standards accordingly; and (2) to report to the Congress within one year, and annually thereafter.