Ausmus v. Perdue

908 F.3d 1248
CourtCourt of Appeals for the Tenth Circuit
DecidedNovember 16, 2018
Docket17-1442
StatusPublished
Cited by7 cases

This text of 908 F.3d 1248 (Ausmus v. Perdue) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ausmus v. Perdue, 908 F.3d 1248 (10th Cir. 2018).

Opinion

BRISCOE, Circuit Judge.

This is an Administrative Procedure Act challenge to the Federal Crop Insurance Corporation's implementation of the Farm Crop Insurance Act, 7 U.S.C. §§ 1501 - 1524. Plaintiffs are winter wheat farmers from Colorado who were denied the Actual Production History yield exclusion when they purchased crop insurance for the 2015 crop year. Plaintiffs unsuccessfully sought review of the denial through the United States Department of Agriculture's administrative appeals process, and then appealed to the district court. The district court reversed the USDA's decision because it concluded that the text of the FCIA unambiguously entitled Plaintiffs to the APH yield exclusion. Exercising jurisdiction pursuant to 28 U.S.C. § 1291 , we AFFIRM.

I

A. Statutory Background

"The Federal Crop Insurance Act was enacted in 1938 as part of President Franklin Delano Roosevelt's New Deal legislation to rescue and preserve agriculture in order to restore it to its previous position of strength in the national economy." Kansas ex rel. Todd v. United States , 995 F.2d 1505 , 1507 (10th Cir. 1993). The Act "promote[s] the national welfare by improving the economic stability of agriculture through a sound system of crop *1250 insurance and providing the means for the research and experience helpful in devising and establishing such insurance." 7 U.S.C. § 1502 (a). Congress created the Federal Crop Insurance Corporation to accomplish these goals. Id. § 1503. If the FCIC determines that "sufficient actuarial data are available," the FCIC "may insure, or provide reinsurance for insurers of, producers of agricultural commodities grown in the United States." Id. § 1058(a)(1).

As is relevant to this appeal, winter wheat farmers can purchase insurance to protect against below-average harvests. The policies at issue here offered yield protection, which is "insurance that only provides protection against a production loss" due to "unavoidable, naturally occurring events." 7 C.F.R. § 457.8 (Common Crop Insurance Policy Basic Provisions, Definition & Causes of Loss Sections). The amount of coverage available for purchase is "determined by multiplying the production guarantee by [the] projected price." Id. (Definition Section). A "projected price" is calculated by the FCIC for each crop for each crop year. Id. The production guarantee is "[t]he number of ... bushels" of wheat insured, and is "determined by multiplying the approved yield per acre by the coverage level percentage" elected by the farmer. Id. The coverage level percentage is the percentage of a farmer's expected harvest that he wishes to insure. Id. ; 7 U.S.C. § 1508 (c)(4)(A). The "approved yield" is "[t]he actual production history (APH) yield, calculated ... by summing the yearly ... yields and dividing the sum by the number of yields." 7 C.F.R. § 457.8 (Definition Section).

Therefore, when a winter wheat farmer decides to purchase a yield protection policy, he must choose what percentage of his expected harvest he wants to insure. The FCIC then calculates his APH yield and the projected price for winter wheat for that crop year. The amount of coverage available for purchase, on a per acre basis, is the product of these three figures: the projected price, the coverage level percentage, and the APH yield. For example, if a farmer wants to insure 75% of his harvest, has historically grown an average of 60 bushels of wheat per acre, and the projected price is $3.40 per bushel, the value of the coverage is $153.00 per acre. See 7 C.F.R. § 457.101 ¶ 11 (Small grains crop insurance provisions). Given this method for calculating insurance coverage, a farmer's actual production history is important. The higher a farmer's actual production history, the more insurance a farmer can purchase.

A farmer's actual production history is a simple average of between four and ten years of his production data. 7 U.S.C. § 1508 (g)(2)(A) ; 7 C.F.R. § 457.8 (Definition Section). Therefore, if production is abnormally low in one of those years, a farmer's APH will be depressed until that data point falls out of the APH calculation. In 2000, Congress amended the FCIA to allow the FCIC to adjust a farmer's actual production history when a farmer had experienced an especially poor harvest. See Agricultural Risk Protection Act of 2000, Pub. L. No.

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908 F.3d 1248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ausmus-v-perdue-ca10-2018.