Federal coverage program takes only yield numbers into account

By MATTHEW WEAVER
Capital Press

Wheat farmer Richard Grant had sprout damage on his crops last year due to rain.

When an insurance adjuster came out to look his fields over, Grant was told he didn't have an issue because he had an average of 96 bushels per acre, above his proven guarantee of 70 bushels.

Due to rain, the test weight of Grant's wheat dropped to about 52 percent, but there would be no payment until the weight dropped to 50 percent, and only fractional payments at that point, he said.

"I was a little unhappy because I thought I had bought crop revenue insurance," Grant said. "I lost half of my revenue, but they would not make any payments or anything on that."

The Idaho Grain Producers Association is examining the situation, executive director Travis Jones said.

"There's some obvious omissions we feel we need to work on to more accurately depict and describe the problems growers are facing when it comes to wheat quality issues that don't always come around every year," Jones said.

Foreign buyers want a guarantee of the quality of wheat they buy from Idaho grain producers, Jones said, so more tests for quality have evolved.

"We want to make sure we have good protection for a grower when it comes to quality," he said. "So when weather events happen, they are justly compensated, just like if you got in a car accident."

Quality is not really acknowledged by insurance, Grant said.

"I lost over half of my crop revenue-wise, but not in yield," he said. "Yield is what they're really looking at, but we're buying crop revenue insurance. We're guaranteeing revenue. If you lose half your revenue when you sell your crop because of quality issues, that should be deducted before they make the settlement on your crop."

Grant wonders why farmers can't multiply their farm crop yield by the harvest price set for August averages and subtract quality discounts off their settlements. The difference between that total and the farmer's guarantee would be their payment.

"That seems really simple," Grant said. "It would take all fluctuations in from year to year as far as what the discount schedule is."

Grant has spoken to representatives of the National Association of Wheat Growers, the Idaho State Farm Bureau and Idaho's congressional representatives about the situation. He said there is discussion over whether a congressional bill is needed or changes can be made internally.

"Everybody looks at me and says, 'Well, that sounds too simple,'" he said. "I'm hoping I can push that along, and maybe it will have a little credence."

Jones said the industry is in a fact-finding phase. Because crop insurance and weather issues are not the same across the country, the association is looking for information from a variety of production zones and practices.

The association is working locally with growers and the regional office of the U.S. Department of Agriculture Risk Management Agency and with the National Association of Wheat Growers because it will turn into a national effort, Jones said.

"To change crop insurance, since most of it's done through federal means, we need to work through those lines of communication," he said. "It's going to be a long-term process, but we're going to try to find short-term answers."

Staff writer Matthew Weaver is based in Spokane. E-mail: mweaver@capitalpress.com.

Online

Idaho Grain Producers Association: www.idahograin.org