II 

112TH CONGRESS 

1ST SESSION S. 1626 

To amend the Food, Conservation, and Energy Act of 2008 to reform agricultural programs by establishing the aggregate risk and revenue management program. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 23, 2011 

Mr. BROWN of Ohio (for himself, Mr. THUNE, Mr. DURBIN, and Mr. LUGAR) 

introduced the following bill; which was read twice and referred to the 

Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To amend the Food, Conservation, and Energy Act of 2008 

to reform agricultural programs by establishing the aggregate risk and revenue management program. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Aggregate Risk and 

5 Revenue Management Act of 2011’’ or the ‘‘ARRM Act 

6 of 2011’’. 


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1 SEC. 2. AGGREGATE RISK AND REVENUE MANAGEMENT 

2 PROGRAM. 

3 Section 1105 of the Food, Conservation, and Energy 

4 Act of 2008 (7 U.S.C. 8715) is amended to read as fol5 lows: 

6 ‘‘SEC. 1105. AGGREGATE RISK AND REVENUE MANAGEMENT 

7 PROGRAM. 

8 ‘‘(a) DEFINITIONS.—In this section: 

9 ‘‘(1) ALTERNATIVE PRICE.—The term ‘alter10 native price’ means an average of the price for each 

11 of the immediately preceding 4 years, as determined 

12 by the National Agricultural Statistics Service, for 

13 each crop for which the harvest price is unavailable. 

14 ‘‘(2) ARRM.—The term ‘ARRM’ means the ag15 gregate risk and revenue management program es16 tablished under this section. 

17 ‘‘(3) CRD.—The term ‘CRD’ means a crop re18 porting district, as determined by the National Agri19 cultural Statistics Service. 

20 ‘‘(4) HARVEST PRICE.—The term ‘harvest 

21 price’ means the harvest price determined by the 

22 Risk Management Agency. 

23 ‘‘(b) AVAILABILITY AND ELECTION OF ALTERNATIVE

24 APPROACH.— 

25 ‘‘(1) AVAILABILITY OF AGGREGATE RISK AND

26 REVENUE MANAGEMENT PAYMENTS.—With respect 


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1 to all covered commodities and peanuts on a farm, 

2 during each of the 2013 through 2017 crop years, 

3 the Secretary shall give the operator, tenant, or 

4 sharecropper, as appropriate, on the farm an oppor5 tunity to make an annual election for all producers 

6 on the farm to receive aggregate risk and revenue 

7 management payments under this section for the 

8 crop year for which the election is made. 

9 ‘‘(2) LIMITATIONS.— 

10 ‘‘(A) IN GENERAL.—The total number of 

11 planted acres for which the producers on a farm 

12 may receive ARRM payments under this section 

13 shall be equal to the total number of acres 

14 planted to all covered commodities and peanuts 

15 on the farm. 

16 ‘‘(B) NATIVE SOD.— 

17 ‘‘(i) IN GENERAL.—Native sod (as de18 fined in section 508(o)(1) of the Federal 

19 Crop Insurance Act (7 U.S.C. 1508(o)(1))) 

20 acreage that is tilled for the purpose of 

21 producing an annual crop after the date of 

22 enactment of the ARRM Act of 2011 shall 

23 not be considered acreage planted to the 

24 covered commodity or peanuts for harvest 

25 on a farm in a crop year for purposes of 


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1 making ARRM payments under this sec2 tion during the first 5 crop years of plant3 ing. 

4 ‘‘(ii) REQUIREMENT.—Ineligibility 

5 under clause (i) shall only apply to the ac6 tual acreage of native sod that was con7 verted to crop production. 

8 ‘‘(3) ELECTION; TIME FOR ELECTION.— 

9 ‘‘(A) IN GENERAL.—The Secretary shall 

10 provide notice to the operators, tenants, or 

11 sharecroppers, as appropriate regarding the op12 portunity to make each of the elections de13 scribed in paragraph (1). 

14 ‘‘(B) NOTICE REQUIREMENTS.—The notice 

15 shall include— 

16 ‘‘(i) notice of the opportunity of the 

17 operator, tenant, or sharecropper, as ap18 propriate, on a farm to make the election; 

19 and 

20 ‘‘(ii) information regarding the man21 ner in which the election must be made 

22 and the time periods and manner in which 

23 notice of the election must be submitted to 

24 the Secretary. 


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1 ‘‘(4) ELECTION DEADLINE.—Within the time 

2 period and in the manner prescribed pursuant to 

3 paragraph (3), the operator, tenant, or sharecropper, 

4 as appropriate, on a farm shall submit to the Sec5 retary notice of an election made under paragraph 

6 (1). 

7 ‘‘(5) EFFECT OF FAILURE TO MAKE ELEC8 TION.—If the operators, tenants, or sharecroppers, 

9 as appropriate, on a farm fail to make an election 

10 under paragraph (1) or fail to timely notify the Sec11 retary of the election made, as required by para12 graph (4), all of the producers on the farm shall be 

13 deemed to not have made the election described in 

14 paragraph (1), for the applicable crop years. 

15 ‘‘(c) PAYMENTS REQUIRED.— 

16 ‘‘(1) IN GENERAL.—In the case of producers on 

17 a farm who make an election under subsection (b) 

18 to receive ARRM payments for any of the 2013 

19 through 2017 crop years for all covered commodities 

20 and peanuts, the Secretary shall make ARRM pay21 ments available to the producers on a farm in ac22 cordance with this subsection. 

23 ‘‘(2) ARRM PAYMENT.— 

24 ‘‘(A) IN GENERAL.—Subject to paragraph 

25 (3), in the case of producers on a farm deVerDate Mar 15 2010 23:29 Sep 27, 2011 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1626.IS S1626

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1 scribed in paragraph (1), the Secretary shall 

2 make ARRM payments available to the pro3 ducers on a farm for each crop year if— 

4 ‘‘(i) the actual CRD revenue for the 

5 crop year for the covered commodity or 

6 peanuts in the CRD determined under sub7 section (e); is less than 

8 ‘‘(ii) the ARRM program guarantee 

9 for the crop year for the covered com10 modity or peanuts in the CRD determined 

11 under subsection (d). 

12 ‘‘(B) INDIVIDUAL LOSS.—The Secretary 

13 shall make ARRM payments available to the 

14 producers on a farm in a CRD for a crop year 

15 only if (as determined by the Secretary)— 

16 ‘‘(i) the actual farm revenue for the 

17 crop year for the covered commodity or 

18 peanuts, as determined under subsection 

19 (g); is less than 

20 ‘‘(ii) the farm ARRM revenue guar21 antee for the crop year for the covered 

22 commodity or peanuts, as determined 

23 under subsection (f). 

24 ‘‘(3) TIME FOR PAYMENTS.—In the case of 

25 each of the 2013 through 2017 crop years, the SecVerDate Mar 15 2010 23:29 Sep 27, 2011 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1626.IS S1626

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1 retary shall make ARRM payments beginning Octo2 ber 1, or as soon as practicable thereafter, after the 

3 date of determination of the harvest price for the 

4 covered commodity or peanuts. 

5 ‘‘(d) ARRM PROGRAM GUARANTEE.— 

6 ‘‘(1) CRD AMOUNT.— 

7 ‘‘(A) IN GENERAL.—For purposes of sub8 section (c)(2)(A) and subject to subparagraphs 

9 (B) and (C), the ARRM program guarantee for 

10 a crop year for a covered commodity or peanuts 

11 in a CRD shall equal 90 percent of the CRD 

12 average revenue, as determined under subpara13 graph (B). 

14 ‘‘(B) CRD AVERAGE REVENUE.—For pur15 poses of subparagraph (A), the CRD average 

16 revenue shall be the average during the mar17 keting years for the immediately preceding 5 

18 crops of a covered commodity and peanuts, ex19 cluding the year in which the CRD revenue was 

20 the highest and the year in which the CRD rev21 enue was the lowest in the period, of the prod22 uct obtained by multiplying— 

23 ‘‘(i) the CRD yield for the covered 

24 commodity or peanuts in a CRD deter25 mined under paragraph (2); and 


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1 ‘‘(ii) the harvest price or alternative 

2 price for the covered commodity or pea3 nuts. 

4 ‘‘(C) MINIMUM AND MAXIMUM GUAR5 ANTEE.—The ARRM program guarantee for a 

6 crop year for a covered commodity or peanuts 

7 under subparagraph (A) shall not decrease or 

8 increase more than 10 percent from the guar9 antee for the preceding crop year. 

10 ‘‘(D) DOUBLE-CROPPED ACREAGE.—Any 

11 crop subsequently planted on land determined 

12 for purposes of the Federal Crop Insurance Act 

13 (7 U.S.C. 1501 et seq.) to be prevented planted 

14 acreage shall not be included in calculating the 

15 ARRM program guarantee under subparagraph 

16 (A) or the actual farm revenue under subsection 

17 (g) unless the farm has a history of double18 cropping and is located in a region in which 

19 double-cropping is an acceptable farming prac20 tice, as determined by the Secretary. 

21 ‘‘(2) ASSIGNED CRD YIELD.—If the Secretary 

22 cannot establish the CRD yield for each planted acre 

23 for a crop year for a covered commodity or peanuts 

24 in a CRD in accordance with subparagraph (A) or 

25 if the yield determined under subparagraph (A) is 


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1 an unrepresentative average yield for the CRD (as 

2 determined by the Secretary), the Secretary shall as3 sign a CRD yield for each planted acre for the crop 

4 year for the covered commodity or peanuts in the 

5 CRD on the basis of— 

6 ‘‘(A) previous average yields for a period of 

7 5 crop years, excluding each of the crop years 

8 with the highest and lowest yields; or 

9 ‘‘(B) CRD yields for planted acres for the 

10 crop year for the covered commodity or peanuts 

11 in similar CRDs. 

12 ‘‘(3) CRDS WITH IRRIGATED AND NONIRRI13 GATED LAND.—In the case of a CRD in which at 

14 least 25 percent of the acreage planted to a covered 

15 commodity or peanuts in the CRD is irrigated and 

16 at least 25 percent of the acreage planted to the cov17 ered commodity or peanuts in the CRD is not irri18 gated, the Secretary shall calculate a separate 

19 ARRM program guarantee for the irrigated and 

20 nonirrigated areas of the CRD for the covered com21 modity or peanuts. 

22 ‘‘(e) ACTUAL CRD REVENUE.— 

23 ‘‘(1) IN GENERAL.—For purposes of subsection 

24 (c)(2)(A), the amount of the actual CRD revenue for 


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1 a crop year of a covered commodity or peanuts shall 

2 equal the product obtained by multiplying— 

3 ‘‘(A) the actual CRD yield for each planted 

4 acre for the crop year for the covered com5 modity or peanuts determined under paragraph 

6 (2); and 

7 ‘‘(B) the national average harvest price or 

8 alternative price received by producers for the 

9 crop year for the covered commodity or peanuts 

10 as determined by the Risk Management Agen11 cy. 

12 ‘‘(2) ACTUAL CRD YIELD.—For purposes of 

13 paragraph (1)(A), the actual CRD yield for each 

14 planted acre for a crop year for a covered commodity 

15 or peanuts in a CRD shall equal (as determined by 

16 the Secretary)— 

17 ‘‘(A) the quantity of the covered com18 modity or peanuts that is produced in the CRD 

19 during the crop year; divided by 

20 ‘‘(B) the number of acres that are planted 

21 to the covered commodity or peanuts in the 

22 CRD during the crop year. 

23 ‘‘(f) FARM ARRM REVENUE GUARANTEE.— 

24 ‘‘(1) IN GENERAL.—For purposes of subsection 

25 (c)(2)(B), the farm ARRM revenue guarantee for 


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1 the crop year for a covered commodity or peanuts 

2 shall equal 90 percent of the average farm revenue 

3 as determined under paragraph (2). 

4 ‘‘(2) AVERAGE FARM REVENUE.—The average 

5 farm revenue shall be equal to the sum obtained by 

6 adding— 

7 ‘‘(A) the average during the marketing 

8 years for the immediately preceding 5 crops of 

9 a covered commodity and peanuts, excluding 

10 the year in which the farm revenue was the 

11 highest and the year in which the farm revenue 

12 was the lowest in the period, of the product ob13 tained by multiplying— 

14 ‘‘(i) the actual production history, as 

15 determined using production records and 

16 data of the Risk Management Agency; and 

17 ‘‘(ii) the harvest price or alternative 

18 price for the covered commodity or peanuts 

19 in a CRD; and 

20 ‘‘(B) the amount of the per acre crop in21 surance premium required to be paid by the 

22 producers on the farm for the applicable crop 

23 year for the covered commodity or peanuts on 

24 the farm. 


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1 ‘‘(g) ACTUAL FARM REVENUE.—For purposes of 

2 subsection (c)(2)(B) and except as provided in subsection 

3 (d)(1)(C), the amount of the actual farm revenue for a 

4 crop year for a covered commodity or peanuts shall equal 

5 the amount determined by multiplying— 

6 ‘‘(1) the actual yield for the covered commodity 

7 or peanuts of the producers on the farm; and 

8 ‘‘(2) the national average harvest price or alter9 native price for the crop year for the covered com10 modity or peanuts. 

11 ‘‘(h) PAYMENT AMOUNT.—If ARRM payments are 

12 required to be paid for any of the 2013 through 2017 crop 

13 years of a covered commodity or peanuts under this sec14 tion, the amount of the ARRM payment to be paid to the 

15 producers on the farm for the crop year under this section 

16 shall be equal to the product obtained by multiplying— 

17 ‘‘(1) the lesser of— 

18 ‘‘(A) the difference between— 

19 ‘‘(i) the ARRM program guarantee 

20 for the crop year for the covered com21 modity or peanuts in the CRD determined 

22 under subsection (d); and 

23 ‘‘(ii) the actual CRD revenue from the 

24 crop year for the covered commodity or 


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1 peanuts in the CRD determined under sub2 section (e); and 

3 ‘‘(B) 15 percent of the ARRM program 

4 guarantee for the crop year for the covered 

5 commodity or peanuts in the CRD determined 

6 under subsection (d); 

7 ‘‘(2) 85 percent of the acreage planted to the 

8 covered commodity or peanuts for harvest on the 

9 farm in the crop year; and 

10 ‘‘(3) the quotient obtained by dividing— 

11 ‘‘(A) the actual production history for the 

12 covered commodity or peanuts of the producers 

13 on the farm, as determined using production 

14 records and data of the Risk Management 

15 Agency; and 

16 ‘‘(B) the assigned CRD yield for each 

17 planted acre for the crop year for the covered 

18 commodity or peanuts in a CRD, as determined 

19 under subsection (d)(2). 

20 ‘‘(i) CROP REPORTING DISTRICT ASSESSMENT.—The 

21 Secretary shall review CRDs in western States that have 

22 7 or fewer CRDs to assess whether additional CRDs in 

23 the States are necessary.’’. 


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1 SEC. 3. CONFORMING AMENDMENTS. 

2 (a) REPEAL OF DIRECT AND COUNTER-CYCLICAL

3 PAYMENTS FOR COVERED COMMODITIES AND PEA4 NUTS.— 

5 (1) IN GENERAL.—Sections 1103, 1104, 1303, 

6 and 1304 of the Food, Conservation, and Energy 

7 Act of 2008 (7 U.S.C. 8713, 8714, 8753, 8754) are 

8 repealed. 

9 (2) APPLICATION.—The amendments made by 

10 paragraph (1) apply beginning with the 2013 crop 

11 year. 

12 (b) PERIOD OF EFFECTIVENESS.—Section 1109 of 

13 the Food, Conservation, and Energy Act of 2008 (7 

14 U.S.C. 8719) is amended by striking ‘‘2012’’ and insert15 ing ‘‘2017’’. 

16 (c) SUSPENSION OF PERMANENT PRICE SUPPORT

17 AUTHORITY.—Section 1602 of the Food, Conservation, 

18 and Energy Act of 2008 (7 U.S.C. 8782) is amended— 

19 (1) by striking ‘‘through 2012’’ each place it 

20 appears and inserting ‘‘through 2017’’; and 

21 (2) by striking ‘‘December 31, 2012’’ each 

22 place it appears and inserting ‘‘December 31, 

23 2017’’. 

24 (d) TECHNICAL AMENDMENTS.— 

25 (1) Section 1001 of the Food, Conservation, 

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1 ed by striking paragraph (1) and inserting the fol2 lowing: 

3 ‘‘(1) AGGREGATE RISK AND REVENUE MANAGE4 MENT PAYMENT.—The term ‘aggregate risk and rev5 enue management payment’ means a payment made 

6 to producers on a farm under section 1105.’’ 

7 (2) Section 1101(d)(1) of the Food, Conserva8 tion, and Energy Act of 2008 (7 U.S.C. 8711(d)(1)) 

9 is amended by striking ‘‘average crop revenue elec10 tion’’ and inserting ‘‘aggregate risk and revenue 

11 management’’. 

12 (3) Section 1106 of the Food, Conservation, 

13 and Energy Act of 2008 (7 U.S.C. 8716) is amend14 ed by striking ‘‘average crop revenue election’’ each 

15 place it appears in subsections (a)(1), (b), and (e) 

16 and inserting ‘‘aggregate risk and revenue manage17 ment’’. 

18 (4) Section 1302(d)(1) of the Food, Conserva19 tion, and Energy Act of 2008 (7 U.S.C. 8752(d)(1)) 

20 is amended by striking ‘‘average crop revenue elec21 tion’’ and inserting ‘‘aggregate risk and revenue 

22 management’’. 

23 (5) Section 1305 of the Food, Conservation, 

24 and Energy Act of 2008 (7 U.S.C. 8755) is amend25 ed by striking ‘‘average crop revenue election’’ each 


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1 place it appears in subsections (a)(1), (b), and (e) 

2 and inserting ‘‘aggregate risk and revenue manage3 ment’’. 

4 (6) Section 1001 of the Food Security Act of 

5 1985 (7 U.S.C. 1308) is amended— 

6 (A) by striking ‘‘ACRE’’ each place it ap7 pears in the headings of subsections (b) and (c) 

8 and inserting ‘‘ARRM’’; 

9 (B) by striking ‘‘ACRE’’ each place it ap10 pears in the headings of paragraph (3) of sub11 sections (b) and (c) and inserting ‘‘ARRM’’; 

12 and 

13 (C) by striking ‘‘average crop revenue elec14 tion’’ each place it appears in subsections (b) 

15 and (c) and inserting ‘‘aggregate risk and rev16 enue management’’. 

17 (7) Section 1001D of the Food Security Act of 

18 1985 (7 U.S.C. 1308–3a) is amended— 

19 (A) in subsection (b)(C)(i), by striking 

20 ‘‘average crop revenue election’’ and inserting 

21 ‘‘aggregate risk and revenue management’’; and 

22 (B) in subsection (f), by striking ‘‘2012’’ 

23 and inserting ‘‘2017’’. 

Æ 


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