Ranchers challenge USDA

Alisa Boswell: Portales News-Tribune

Eastern New Mexico ranchers are taking legal action against the U.S. Department of Agriculture's Risk Management Agency because they have not received any insurance payments in 2011 for drought assistance.

Causey cattle rancher Ross Caviness doubts the U.S. Department of Agriculture will ever pay what he believes they owe him for crop insurance.

Now, Caviness and other ranchers are taking action by challenging the USDA's Risk Management Agency (RMA), using one of New Mexico's biggest agricultural organizations to represent them, according to New Mexico Farm and Livestock Bureau Executive Vice President Matt Rush.

Two years ago, the federal agency's RMA offered a pilot program — drought insurance for pasture land. Producers were told pay-outs would be determined by the greenness of pastures as seen on satellite images, Rush said.

It's been a year and Caviness hasn't received payments for February through April of 2011. With last year being one of the worst droughts New Mexico farmers and ranchers have ever experienced, many filed claims. But much to their disappointment, they were denied because they were told their pastures had too much vegetation, according to Rush.

Rush said 94 policies were sold last year in New Mexico, with more than half of the policies purchased by ranchers in eastern New Mexico.

Payments arrive 60 to 90 days after a selected three-month period.

"Very few people got paid," Rush said.

Rush said the livestock bureau was told the RMA's findings could not be appealed because at that time, it was a pilot program.

According to Bill Sauble of Sauble Ranch Company who is working with Rush and others to challenge the RMA's findings, they hired an attorney and took the issue to a national appeals division.

The hearing officer determined in June that the RMA's findings can in fact be appealed, Sauble said.

"Now we're back to square one," Rush said. "A lot of ranchers think nothing is going to happen, but they shouldn't lose faith."

Sauble said $340,000 is at stake for the Sauble Ranch, assuming that a 100 percent loss would be recognized for the entire year of 2011.

He said the RMA is in the process of appealing the officer's decision.

"If the hearing officer's decision holds, then at that point we can go back and present our losses were more than what the satellites showed," Sauble said. "Their numbers are based on satellite imagery and what the vegetation is of that grid."

According to Sauble, payments were high for those who signed up their land in the summer months, but little to no payments were issued for earlier months.

"Some will argue that insurance agents didn't explain it to farmers well enough," Sauble said. "What we did at Sauble ranch, not knowing how the program would work, is we put land in each (three-month) interval. We felt their numbers weren't accurate on the conditions of the ground in the spring."

Caviness said he signed up about 1,400 acres last year and had very little collection on insurance.

"When they sold it to us, they said it was based on green grass then it ended up being measured by the amount of vegetation," Caviness said.

He says he has a better understanding of the program and that the RMA has made improvements.

"Now the vegetation is all gone so it's paying off better this year," Caviness said.

He will have to wait until October to receive this year's payments.

"If it comes out 90 percent loss, it will pay like $9 an acre," Caviness said.

As far as last year's claims with the RMA, he feels that the issue is a lost cause.

"I don't know if it's worth it, but I think the insurance has improved over last year," he said. "They're (RMA) trying to correct what they base it on, but whether we're going to get paid for last year is doubtful."