text: 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''.
target: 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.
feat_title: 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.