Sen. Jeff Bingaman wants the Department of Agriculture to explain why new federal insurance has paid a pittance to New Mexico ranchers during “one of the worst statewide droughts in modern times” — while a similar program in Texas has paid $65.5 million in claims. “(Cattle) producers in my state purchased what they thought was drought insurance, but are now having their claims denied even though the historical vegetation index has shown substantial losses …,” Bingaman wrote Thursday in a letter to Michael Scuse, acting undersecretary for the USDA. About 95 New Mexico ranchers purchased policies last September as part of the pilot program administered by the USDA’s Risk Management Agency thinking payments would kick in with dry conditions. Ranchers have paid about $1.65 million in premiums but the program has paid only about $2,000 in claims here. “The producers expected the insurance to cover the green grass needed to feed their herds in the grazing season,” said Bingaman, D-N.M. “However, they later came to understand that the vegetation index would cover all biomass, including juniper and piñon trees, cholla cactus, and creosote and broom snakeweed, which cattle can’t eat.” The USDA’s Risk Management Agency has told the Journal the policies are not drought insurance, rather “insuring a decline in the vegetation/greenness index.” The green index is measured from satellite imagery...more
No comments:
Post a Comment