U.S. Representative Stephanie Herseth Sandlin - South Dakota
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For Immediate Release Contact: Betsy Hart
June 9, 2008 (202) 226-8555

HERSETH SANDLIN: CORN AND SOYBEAN PRODUCERS
SHOULDN’T HAVE TO PAY PENALTY

Requests Waiver of Penalty on Insured Crops Planted after Deadline; Cites Extreme Weather for Delay in Planting

June 9th, 2008,Washington, DC-Citing the extreme weather that has caused delays in planting across the state, Rep. Herseth Sandlin is requesting a waiver of a penalty that some South Dakota producers may have to pay. Late last week, Herseth Sandlin sent a letter on behalf of corn and soybean producers in South Dakota to Administrator of the U.S. Department of Agriculture Risk Management Agency Eldon Gould and Director of the Billings Regional Office Director Doug Hagel requesting temporary relief from the penalty imposed on insured crops planted after the planting deadline.

The unusually wet spring in central and eastern South Dakota prevented many corn growers from getting their crops in the ground by the May 25th deadline required to receive full crop insurance coverage. Soybean growers may experience similar difficulties in meeting the June 9th deadline. Herseth Sandlin said, “Providing temporary relief from crop insurance penalties will allow corn and soybean growers to get their crops in the ground, while not punishing them unfairly due to weather conditions outside of their control.”

Herseth Sandlin’s letter requests cutting in half the one percent penalty on all insured crops still unplanted, retroactive to each crop’s respective planting deadline. This relief will allow farmers to plant corn and soybeans as planned while minimizing the cost of weather-related planting delays. The full text of the letter to Adminstrator Gould and Director Hagel can be found below.

June 6, 2008

Mr. Eldon Gould, Administrator
Risk Management Agency
U.S. Department of Agriculture
1400 Independence Ave. SW
Washington, DC 20250-0801

Dear Mr. Gould,

I write today on behalf of corn and soybean producers in South Dakota requesting temporary relief from the penalty imposed on all insured crops that remain unplanted past the planting deadlines.

As you may know, this has been a particularly wet spring in the Plains. While weather is something we know we cannot control, the continuous rain has meant that many corn and soybean producers in Central and Eastern South Dakota have been unable get their crop in the ground by their planting deadlines. With the May 25th cutoff date already passed for corn planting, farmers are switching to other crops or planting out of season despite the risk of lower yields and less crop insurance coverage. Either way, it appears corn yields will probably be lower than last year and may fail to meet the nation's 13-billion-bushel demand. A similar situation may occur once the June 9th planting deadline for soybean passes.

Given the potential crop shortages, assistance for producers to ensure that enough corn and soybeans are still planted to meet national and international demand is needed soon. To this end I ask you to immediately consider cutting in half the one percent penalty on all insured crops still unplanted, retroactive to each crop’s respective planting deadline. This relief will allow farmers to plant corn and soybeans as planned while minimizing the cost of weather-related planting delays.

I understand that many factors go into determination of the planting deadlines and do not want to set a precedent for regularly waiving these dates. However, from what I understand, these dates have not been revised for many years and perhaps may not take into account extreme weather conditions or recent genetic and technological developments that allow high crop yields in shorter planting times.

Thank you for your consideration of this request. I look forward to hearing back from you as soon as possible.

 

Washington, DC

331 Cannon House Office Building
Washington, DC 20515
Phone: (202) 225-2801
Fax: (202) 225-5823
Sioux Falls

326 East 8th Street, Suite 108
Sioux Falls, SD 57104
Phone: (605) 367-8371
Fax: (605) 367-8373
Toll Free: (866) 371-8747
Rapid City

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Rapid City, SD 57702
Phone: (605) 394-5280
Fax: (605) 394-5282

Aberdeen

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Aberdeen, SD 57401
Phone: (605) 626-3440
Fax: (605) 626-3441