Title: ARC-CO Improvement Act
Policy area: Agriculture and Food

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.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1998 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1998

     To amend the Agricultural Act of 2014 to reduce county yield 
               disparities for agriculture risk coverage.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 24, 2017

  Ms. Heitkamp (for herself and Mrs. Ernst) introduced the following 
      bill; which was read twice and referred to the Committee on 
                  Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
     To amend the Agricultural Act of 2014 to reduce county yield 
               disparities for agriculture risk coverage.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``ARC-CO Improvement Act''.

SEC. 2. COUNTY YIELD DISPARITIES.

    (a) Actual Crop Revenues.--Section 1117(b) of the Agricultural Act 
of 2014 (7 U.S.C. 9017(b)) is amended--
            (1) in paragraph (1)(A), by inserting ``(including any 
        adjustments under paragraph (3))'' after ``Secretary''; and
            (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)) is amended--
            (1) in paragraph (3), by striking ``and'' after the 
        semicolon at the end;
            (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.''.
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