WASHINGTON, D.C. - Montana’s Congressman, Denny Rehberg, contacted both the USDA Risk Management Association and the USDA National Agriculture Statistics Service (NASS) expressing concerns that the Group Risk Plan (GRP) has failed to fairly repay Montana producers from losses incurred due to droughts in 2008. The GRP is a pilot program backed by the USDA Risk Management Agency.

"For some federal bureaucrats sitting behind a desk in Washington, D.C., this problem will be seen as a simple question of statistics and number crunching," said Rehberg, a member of the House Appropriations Committee. "For any of Montana’s ag producers in Dawson, Richland, McCone, Roosevelt or Sheridan Counties, this is literally a matter of survival and it’s my job to bring that sense of urgency to Washington, D.C."

When drought conditions caused a reduced harvest in 2008, many Montana producers counted on insurance money from the GRP for the premiums they paid. They were told, instead, that they will not receive payments until 2010, if at all. The program uses data collected by the National Ag Statistics Service, which depends on written surveys of harvested land, but fails to account for land which is not even harvested because of drought conditions. In a letter to the USDA, Rehberg challenged this methodology as failing to reflect true the loss in a county. Rehberg asked USDA to provide producers the payments that they need, but are not receiving.

"This needs to get corrected quickly," said Rehberg. "These folks invested their money in good faith and have every right to be upset when the government does not uphold its end of the deal."

Letter:

June 18, 2009

William Murphy
Acting Administrator
Risk Management Agency
USDA/RMA/Stop 0801
1400 Independence Ave., SW
Washington, DC 20250

Cynthia Clark, Administrator
USDA-NASS
1400 Independence Ave., SW
Washington, DC 20250

Dear Mr. Murphy and Ms. Clark:

I am writing regarding concerns that the Group Risk Plan (GRP) has failed to repay Montana producers from losses incurred due to droughts in 2008.

In a recent meeting held in Glendive, MT, that included affected producers from Dawson, Richland, McCone, Roosevelt, and Sheridan Counties, insurance agents, a representative from Farm Service Agency (FSA), and National Ag Statistics Service (NASS), there was substantial evidence presented to suggest a number of counties suffered from a short-fall in forage production due to the dry conditions.

Currently, the GRP program relies on production data collected by NASS, which is obtained through written surveys and possible follow-up telephone calls. The surveys only take into account harvested acreage, rather than the total acreage of land that would be harvested during non-drought conditions, and is only a sampling of a small number of producers. While this may be acceptable for certain applications, this methodology of data collection fails to indicate true loss in a county. A more accurate method would be to use the total "acres insured" or total acres identified as "hay land" for insurance purposes.

Thank you for your considerations of this adjustment for our producers. If you have any questions or concerns please contact Mary Heller at (202) 225-3211.

Sincerely,