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.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Aggregate Risk and Revenue 
Management Act of 2011'' or the ``ARRM Act of 2011''.

SEC. 2. AGGREGATE RISK AND REVENUE MANAGEMENT PROGRAM.

    Section 1105 of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 8715) is amended to read as follows:

``SEC. 1105. AGGREGATE RISK AND REVENUE MANAGEMENT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Alternative price.--The term `alternative price' 
        means an average of the price for each of the immediately 
        preceding 4 years, as determined by the National Agricultural 
        Statistics Service, for each crop for which the harvest price 
        is unavailable.
            ``(2) ARRM.--The term `ARRM' means the aggregate risk and 
        revenue management program established under this section.
            ``(3) CRD.--The term `CRD' means a crop reporting district, 
        as determined by the National Agricultural Statistics Service.
            ``(4) Harvest price.--The term `harvest price' means the 
        harvest price determined by the Risk Management Agency.
    ``(b) Availability and Election of Alternative Approach.--
            ``(1) Availability of aggregate risk and revenue management 
        payments.--With respect to all covered commodities and peanuts 
        on a farm, during each of the 2013 through 2017 crop years, the 
        Secretary shall give the operator, tenant, or sharecropper, as 
        appropriate, on the farm an opportunity to make an annual 
        election for all producers on the farm to receive aggregate 
        risk and revenue management payments under this section for the 
        crop year for which the election is made.
            ``(2) Limitations.--
                    ``(A) In general.--The total number of planted 
                acres for which the producers on a farm may receive 
                ARRM payments under this section shall be equal to the 
                total number of acres planted to all covered 
                commodities and peanuts on the farm.
                    ``(B) Native sod.--
                            ``(i) In general.--Native sod (as defined 
                        in section 508(o)(1) of the Federal Crop 
                        Insurance Act (7 U.S.C. 1508(o)(1))) acreage 
                        that is tilled for the purpose of producing an 
                        annual crop after the date of enactment of the 
                        ARRM Act of 2011 shall not be considered 
                        acreage planted to the covered commodity or 
                        peanuts for harvest on a farm in a crop year 
                        for purposes of making ARRM payments under this 
                        section during the first 5 crop years of 
                        planting.
                            ``(ii) Requirement.--Ineligibility under 
                        clause (i) shall only apply to the actual 
                        acreage of native sod that was converted to 
                        crop production.
            ``(3) Election; time for election.--
                    ``(A) In general.--The Secretary shall provide 
                notice to the operators, tenants, or sharecroppers, as 
                appropriate regarding the opportunity to make each of 
                the elections described in paragraph (1).
                    ``(B) Notice requirements.--The notice shall 
                include--
                            ``(i) notice of the opportunity of the 
                        operator, tenant, or sharecropper, as 
                        appropriate, on a farm to make the election; 
                        and
                            ``(ii) information regarding the manner in 
                        which the election must be made and the time 
                        periods and manner in which notice of the 
                        election must be submitted to the Secretary.
            ``(4) Election deadline.--Within the time period and in the 
        manner prescribed pursuant to paragraph (3), the operator, 
        tenant, or sharecropper, as appropriate, on a farm shall submit 
        to the Secretary notice of an election made under paragraph 
        (1).
            ``(5) Effect of failure to make election.--If the 
        operators, tenants, or sharecroppers, as appropriate, on a farm 
        fail to make an election under paragraph (1) or fail to timely 
        notify the Secretary of the election made, as required by 
        paragraph (4), all of the producers on the farm shall be deemed 
        to not have made the election described in paragraph (1), for 
        the applicable crop years.
    ``(c) Payments Required.--
            ``(1) In general.--In the case of producers on a farm who 
        make an election under subsection (b) to receive ARRM payments 
        for any of the 2013 through 2017 crop years for all covered 
        commodities and peanuts, the Secretary shall make ARRM payments 
        available to the producers on a farm in accordance with this 
        subsection.
            ``(2) ARRM payment.--
                    ``(A) In general.--Subject to paragraph (3), in the 
                case of producers on a farm described in paragraph (1), 
                the Secretary shall make ARRM payments available to the 
                producers on a farm for each crop year if--
                            ``(i) the actual CRD revenue for the crop 
                        year for the covered commodity or peanuts in 
                        the CRD determined under subsection (e); is 
                        less than
                            ``(ii) the ARRM program guarantee for the 
                        crop year for the covered commodity or peanuts 
                        in the CRD determined under subsection (d).
                    ``(B) Individual loss.--The Secretary shall make 
                ARRM payments available to the producers on a farm in a 
                CRD for a crop year only if (as determined by the 
                Secretary)--
                            ``(i) the actual farm revenue for the crop 
                        year for the covered commodity or peanuts, as 
                        determined under subsection (g); is less than
                            ``(ii) the farm ARRM revenue guarantee for 
                        the crop year for the covered commodity or 
                        peanuts, as determined under subsection (f).
            ``(3) Time for payments.--In the case of each of the 2013 
        through 2017 crop years, the Secretary shall make ARRM payments 
        beginning October 1, or as soon as practicable thereafter, 
        after the date of determination of the harvest price for the 
        covered commodity or peanuts.
    ``(d) ARRM Program Guarantee.--
            ``(1) CRD amount.--
                    ``(A) In general.--For purposes of subsection 
                (c)(2)(A) and subject to subparagraphs (B) and (C), the 
                ARRM program guarantee for a crop year for a covered 
                commodity or peanuts in a CRD shall equal 90 percent of 
                the CRD average revenue, as determined under 
                subparagraph (B).
                    ``(B) CRD average revenue.--For purposes of 
                subparagraph (A), the CRD average revenue shall be the 
                average during the marketing years for the immediately 
                preceding 5 crops of a covered commodity and peanuts, 
                excluding the year in which the CRD revenue was the 
                highest and the year in which the CRD revenue was the 
                lowest in the period, of the product obtained by 
                multiplying--
                            ``(i) the CRD yield for the covered 
                        commodity or peanuts in a CRD determined under 
                        paragraph (2); and
                            ``(ii) the harvest price or alternative 
                        price for the covered commodity or peanuts.
                    ``(C) Minimum and maximum guarantee.--The ARRM 
                program guarantee for a crop year for a covered 
                commodity or peanuts under subparagraph (A) shall not 
                decrease or increase more than 10 percent from the 
                guarantee for the preceding crop year.
                    ``(D) Double-cropped acreage.--Any crop 
                subsequently planted on land determined for purposes of 
                the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) 
                to be prevented planted acreage shall not be included 
                in calculating the ARRM program guarantee under 
                subparagraph (A) or the actual farm revenue under 
                subsection (g) unless the farm has a history of double-
                cropping and is located in a region in which double-
                cropping is an acceptable farming practice, as 
                determined by the Secretary.
            ``(2) Assigned crd yield.--If the Secretary cannot 
        establish the CRD yield for each planted acre for a crop year 
        for a covered commodity or peanuts in a CRD in accordance with 
        subparagraph (A) or if the yield determined under subparagraph 
        (A) is an unrepresentative average yield for the CRD (as 
        determined by the Secretary), the Secretary shall assign a CRD 
        yield for each planted acre for the crop year for the covered 
        commodity or peanuts in the CRD on the basis of--
                    ``(A) previous average yields for a period of 5 
                crop years, excluding each of the crop years with the 
                highest and lowest yields; or
                    ``(B) CRD yields for planted acres for the crop 
                year for the covered commodity or peanuts in similar 
                CRDs.
            ``(3) CRDs with irrigated and nonirrigated land.--In the 
        case of a CRD in which at least 25 percent of the acreage 
        planted to a covered commodity or peanuts in the CRD is 
        irrigated and at least 25 percent of the acreage planted to the 
        covered commodity or peanuts in the CRD is not irrigated, the 
        Secretary shall calculate a separate ARRM program guarantee for 
        the irrigated and nonirrigated areas of the CRD for the covered 
        commodity or peanuts.
    ``(e) Actual CRD Revenue.--
            ``(1) In general.--For purposes of subsection (c)(2)(A), 
        the amount of the actual CRD revenue for a crop year of a 
        covered commodity or peanuts shall equal the product obtained 
        by multiplying--
                    ``(A) the actual CRD yield for each planted acre 
                for the crop year for the covered commodity or peanuts 
                determined under paragraph (2); and
                    ``(B) the national average harvest price or 
                alternative price received by producers for the crop 
                year for the covered commodity or peanuts as determined 
                by the Risk Management Agency.
            ``(2) Actual crd yield.--For purposes of paragraph (1)(A), 
        the actual CRD yield for each planted acre for a crop year for 
        a covered commodity or peanuts in a CRD shall equal (as 
        determined by the Secretary)--
                    ``(A) the quantity of the covered commodity or 
                peanuts that is produced in the CRD during the crop 
                year; divided by
                    ``(B) the number of acres that are planted to the 
                covered commodity or peanuts in the CRD during the crop 
                year.
    ``(f) Farm ARRM Revenue Guarantee.--
            ``(1) In general.--For purposes of subsection (c)(2)(B), 
        the farm ARRM revenue guarantee for the crop year for a covered 
        commodity or peanuts shall equal 90 percent of the average farm 
        revenue as determined under paragraph (2).
            ``(2) Average farm revenue.--The average farm revenue shall 
        be equal to the sum obtained by adding--
                    ``(A) the average during the marketing years for 
                the immediately preceding 5 crops of a covered 
                commodity and peanuts, excluding the year in which the 
                farm revenue was the highest and the year in which the 
                farm revenue was the lowest in the period, of the 
                product obtained by multiplying--
                            ``(i) the actual production history, as 
                        determined using production records and data of 
                        the Risk Management Agency; and
                            ``(ii) the harvest price or alternative 
                        price for the covered commodity or peanuts in a 
                        CRD; and
                    ``(B) the amount of the per acre crop insurance 
                premium required to be paid by the producers on the 
                farm for the applicable crop year for the covered 
                commodity or peanuts on the farm.
    ``(g) Actual Farm Revenue.--For purposes of subsection (c)(2)(B) 
and except as provided in subsection (d)(1)(C), the amount of the 
actual farm revenue for a crop year for a covered commodity or peanuts 
shall equal the amount determined by multiplying--
            ``(1) the actual yield for the covered commodity or peanuts 
        of the producers on the farm; and
            ``(2) the national average harvest price or alternative 
        price for the crop year for the covered commodity or peanuts.
    ``(h) Payment Amount.--If ARRM payments are required to be paid for 
any of the 2013 through 2017 crop years of a covered commodity or 
peanuts under this section, the amount of the ARRM payment to be paid 
to the producers on the farm for the crop year under this section shall 
be equal to the product obtained by multiplying--
            ``(1) the lesser of--
                    ``(A) the difference between--
                            ``(i) the ARRM program guarantee for the 
                        crop year for the covered commodity or peanuts 
                        in the CRD determined under subsection (d); and
                            ``(ii) the actual CRD revenue from the crop 
                        year for the covered commodity or peanuts in 
                        the CRD determined under subsection (e); and
                    ``(B) 15 percent of the ARRM program guarantee for 
                the crop year for the covered commodity or peanuts in 
                the CRD determined under subsection (d);
            ``(2) 85 percent of the acreage planted to the covered 
        commodity or peanuts for harvest on the farm in the crop year; 
        and
            ``(3) the quotient obtained by dividing--
                    ``(A) the actual production history for the covered 
                commodity or peanuts of the producers on the farm, as 
                determined using production records and data of the 
                Risk Management Agency; and
                    ``(B) the assigned CRD yield for each planted acre 
                for the crop year for the covered commodity or peanuts 
                in a CRD, as determined under subsection (d)(2).
    ``(i) Crop Reporting District Assessment.--The Secretary shall 
review CRDs in western States that have 7 or fewer CRDs to assess 
whether additional CRDs in the States are necessary.''.

SEC. 3. CONFORMING AMENDMENTS.

    (a) Repeal of Direct and Counter-Cyclical Payments for Covered 
Commodities and Peanuts.--
            (1) In general.--Sections 1103, 1104, 1303, and 1304 of the 
        Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 
        8714, 8753, 8754) are repealed.
            (2) Application.--The amendments made by paragraph (1) 
        apply beginning with the 2013 crop year.
    (b) Period of Effectiveness.--Section 1109 of the Food, 
Conservation, and Energy Act of 2008 (7 U.S.C. 8719) is amended by 
striking ``2012'' and inserting ``2017''.
    (c) Suspension of Permanent Price Support Authority.--Section 1602 
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8782) is 
amended--
            (1) by striking ``through 2012'' each place it appears and 
        inserting ``through 2017''; and
            (2) by striking ``December 31, 2012'' each place it appears 
        and inserting ``December 31, 2017''.
    (d) Technical Amendments.--
            (1) Section 1001 of the Food, Conservation, and Energy Act 
        of 2008 (7 U.S.C. 8702) is amended by striking paragraph (1) 
        and inserting the following:
            ``(1) Aggregate risk and revenue management payment.--The 
        term `aggregate risk and revenue management payment' means a 
        payment made to producers on a farm under section 1105.''
            (2) Section 1101(d)(1) of the Food, Conservation, and 
        Energy Act of 2008 (7 U.S.C. 8711(d)(1)) is amended by striking 
        ``average crop revenue election'' and inserting ``aggregate 
        risk and revenue management''.
            (3) Section 1106 of the Food, Conservation, and Energy Act 
        of 2008 (7 U.S.C. 8716) is amended by striking ``average crop 
        revenue election'' each place it appears in subsections (a)(1), 
        (b), and (e) and inserting ``aggregate risk and revenue 
        management''.
            (4) Section 1302(d)(1) of the Food, Conservation, and 
        Energy Act of 2008 (7 U.S.C. 8752(d)(1)) is amended by striking 
        ``average crop revenue election'' and inserting ``aggregate 
        risk and revenue management''.
            (5) Section 1305 of the Food, Conservation, and Energy Act 
        of 2008 (7 U.S.C. 8755) is amended by striking ``average crop 
        revenue election'' each place it appears in subsections (a)(1), 
        (b), and (e) and inserting ``aggregate risk and revenue 
        management''.
            (6) Section 1001 of the Food Security Act of 1985 (7 U.S.C. 
        1308) is amended--
                    (A) by striking ``ACRE'' each place it appears in 
                the headings of subsections (b) and (c) and inserting 
                ``ARRM'';
                    (B) by striking ``ACRE'' each place it appears in 
                the headings of paragraph (3) of subsections (b) and 
                (c) and inserting ``ARRM''; and
                    (C) by striking ``average crop revenue election'' 
                each place it appears in subsections (b) and (c) and 
                inserting ``aggregate risk and revenue management''.
            (7) Section 1001D of the Food Security Act of 1985 (7 
        U.S.C. 1308-3a) is amended--
                    (A) in subsection (b)(C)(i), by striking ``average 
                crop revenue election'' and inserting ``aggregate risk 
                and revenue management''; and
                    (B) in subsection (f), by striking ``2012'' and 
                inserting ``2017''.

Summary: Aggregate Risk and Revenue Management Act of 2011 or the ARRM Act of 2011 - Amends the Food, Conservation, and Energy Act of 2008 to direct the Secretary of Agriculture (USDA), regarding all covered commodities and peanuts during each of the 2013-2017 crop years, to give the operator, tenant, or sharecropper on a farm an opportunity to make an annual election for all producers on the farm to receive aggregate risk and revenue management payments for the crop year for which the election is made. (Replaces the average crop revenue election program with the ARRM program.)

Repeals the direct and counter-cyclical payment programs for covered commodities and peanuts beginning with the 2013 crop year.

Suspends permanent price support authority through December 31, 2017.