North Dakota Producers Seek Reliable Export Markets

By Scout Nelson

Farmers in the Red River Valley could face crop losses when the Fargo Moorhead flood protection project operates during high water events. Senator John Hoeven is advancing a two-part plan to provide protection for producers affected by the project.

The plan focuses on two main areas: protecting federal crop insurance coverage and providing financial support when diversion operations damage crops or prevent planting.

Federal crop insurance generally covers losses caused by natural disasters. However, losses caused by the operation of a man-made flood control structure may not qualify as an insurable cause of loss. This can create a challenge for farmers whose fields are affected by the Fargo Moorhead diversion.

Hoeven has secured legislation in the Senate Farm Bill 2.0 that would protect affected farmers from losing crop insurance benefits because of diversion operations. The measure would exclude affected years from a producer’s Actual Production History, or APH.

APH uses historical crop yields, generally from up to 10 years, to help determine future crop insurance guarantees. If diversion operations reduce a farmer’s recorded yields, future insurance coverage could also be reduced. The proposed change is designed to prevent that result.

The second part of the plan creates a crop loss program using federal funding Hoeven secured earlier this year. The senator obtained $100 million from the U.S. Army Corps of Engineers to reduce the local cost of the Red River Valley flood protection project.

Of that funding, $25 million will support a crop loss program administered by the Fargo Moorhead Diversion Authority. The program will provide full coverage for federally insured crops damaged by diversion operations. It will also match the coverage level producers purchase for prevented planting.

“We’ve taken a comprehensive approach to flood protection in the Red River Valley, and our two-part plan is about fulfilling this promise for upstream farmers. To this end, my legislation addresses gaps in federal crop insurance coverage, while we are also using a portion of the $100 million we secured from the Corps to make producers whole when the diversion has to be put to use,” said Hoeven.

Photo Credit: John Hoeven