ARC-CO Improvement Act

To amend the Agricultural Act of 2014 to reduce county yield disparities for agriculture risk coverage. 1. Short title This Act may be cited as the ARC-CO Improvement Act 2. County yield disparities (a) Actual crop revenues Section 1117(b) of the Agricultural Act of 2014 ( 7 U.S.C. 9017(b) (1) in paragraph (1)(A), by inserting (including any adjustments under paragraph (3)) Secretary (2) by adding at the end the following: (3) County yield disparities (A) In general In the case of county coverage, the Secretary may adjust county yields under paragraph (1)(A) to reduce disparities between neighboring and nearby counties with similar soils and climate that cannot be explained by a localized weather event. (B) Aggregate estimated payment The Secretary shall ensure that all adjustments made under this paragraph are balanced so the aggregate amount of payments made under this section as a result of the adjustments for a crop year do not increase. (C) Options (i) In general If the Secretary makes adjustments under this paragraph, the Secretary shall make the adjustments in accordance with clause (ii) or (iii). (ii) Variations within a State (I) In general Subject to subparagraph (B), the Secretary shall allow State committees of the Farm Service Agency to review and recommend adjustments to the initial yield estimates before the adjustments become final to reduce unexplained variation between neighboring or nearby counties with similar soils and climate. (II) Review and approval The Secretary shall review and approve or reject adjustments recommended under subclause (I) before the adjustments become final. (iii) Variations along State boundaries (I) In general Subject to subparagraph (B), the Secretary shall allow State committees of the Farm Service Agency or the national office of the Farm Service Agency, in consultation with affected State committees, to review and recommend adjustments to the initial yield estimates before the adjustments become final to reduce unexplained variation between counties in neighboring States. (II) Review and approval The Secretary shall review and approve or reject adjustments recommended under subclause (I) before the adjustments become final. . (b) Additional duties of the Secretary Section 1117(g) of the Agricultural Act of 2014 ( 7 U.S.C. 9017(g) (1) in paragraph (3), by striking and (2) in paragraph (4)(B), by striking the period at the end and insert a semicolon; and (3) by adding at the end the following: (5) in the case of county coverage, prioritize the use of yields from sources that provide the greatest geographic coverage of county-level data from the same source; and (6) in the case of county coverage— (A) use the yield, benchmark revenue and payment rate based on the county of the physical location of the farm; and (B) in the case of a farm that crosses county boundaries— (i) split the base acres on a pro rata basis based on the relative quantity of cropland in each county; and (ii) calculate any payments on that same pro rata basis. .

Summary: ARC-CO Improvement Act This bill amends the Agricultural Act of 2014 to authorize the Department of Agriculture (USDA) to make certain adjustments to county yields used to calculate actual crop revenue under the Agriculture Risk Coverage-County Level program (ARC-CO) to reduce disparities between neighboring and nearby counties with similar soils and climate that cannot be explained by a localized weather event. (Under ARC-CO, farmers receive payments when the actual county crop revenue of a covered commodity is less than the ARC-CO guarantee for the covered commodity.) In the case of county coverage, USDA must: (1) prioritize the use of yields from sources that provide the greatest geographic coverage of county-level data from the same source; and (2) use the yield, benchmark revenue, and payment rate based on the county of the physical location of the farm. With respect to a farm that crosses county boundaries, USDA must: (1) split the base acres on a pro rata basis based on the relative quantity of cropland in each county, and (2) calculate any payments on the same pro rata basis.