| FOR IMMEDIATE RELEASE | CONTACT: Lee Boyer |
| May 4, 2007 | (406) 444-2402 |
Hail Insurance Board Adopts Higher Coverage Limits
HELENA, Mont. — The Montana Board of Hail Insurance acted quickly in raising coverage limits after Governor Brian Schweitzer signed legislation April 26 to increase the maximums for coverage under the hail insurance program operated by the Montana Department of Agriculture.
The five-member board voted April 27 to set the insurance limit for the state program at the maximums contained in House Bill 537. Dryland producers can insure crops for up to $50 an acre. Irrigated crops can be insured for up to $76 an acre. Previous limits were $40 per acre for dryland crops and $56 per acre for irrigated crops.
"Input costs for dryland and irrigated crops have gone through the roof, and ag lenders want more assurance that their loans will be covered. Allowing producers to recover at least the majority of their planting costs remains the goal of the program. This increase in the hail program, along with multi-peril insurance, will assist farmers to do just that," said board Chairman Gary Gollehon of Brady.
"Statewide, farmers support this program and they originally asked legislators to double the available coverage," added Trudy Laas Skari, a board member from Chester.
Montana is the only state to operate a state hail insurance program. The program is self-supporting, and by law returns 1.5 percent of paid premiums to the state general fund. A prior increase in coverage limits, authorized by the 2003 Legislature, was phased in over two years. Actuarial consultants informed the board this time that the hail program was financially sound and could adopt the full increase with confidence.
The board also formally added camelina, chickpeas and sainfoin to the list of crops, and added a new fruit category that includes cherries, apples and grapes. Legally, the program can issue hail insurance for any crop grown in Montana. The board decided that listing the crops would emphasize the availability of insurance, said state agriculture Director Nancy K. Peterson, who serves as a member of the board.
In December 2006, the Board of Hail Insurance approved a 50 percent refund of premiums paid last year, based on a relatively low incidence of hail losses during 2006. The program insured 1.7 million crop acres in 2006 and a record 1.9 million acres the previous year.
Serving on the board with Peterson, Gollehon and Skari are producer Jim Schillinger of Baker and State Auditor John Morrison. For more information about state hail insurance, contact the Montana Department of Agriculture's hail specialist at (406) 444-2402 or by email at agr@mt.gov.
