Judge orders payment to Grabaski partners [Agweek Magazine] - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
July 17, 2012 Newswires
Share
Share
Post
Email

Judge orders payment to Grabaski partners [Agweek Magazine]

Mikkel Pates, Agweek Magazine
By Mikkel Pates, Agweek Magazine
McClatchy-Tribune Information Services

July 16--A federal judge in Denver has agreed with Tom Grabanski, formerly of Grafton, N.D., who, along with his partners in a farming operation in Colorado, was denied some $8 million in crop insurance indemnities in 2008.

Richard P. Matsch, senior district judge, ordered the U.S. Department of Agriculture'sRisk Management Agency to pay indemnities to the partnership, though some issues are still in dispute. Grabanski, who also farmed in North Dakota and Texas, says the government's refusal to pay the $8 million threw his operations into an economic tizzy that led to numerous bankruptcies and lawsuits, most of which are still underway.

"Like we've said, we didn't do anything wrong with that insurance," Grabanski told Agweek on July 12, saying he hadn't heard or read the decision, but knew it was coming. "The government decided not to pay us."

The case centers on the Group Risk Income Program, which is designed to protect revenue loss. GRIP participants are indemnified if the county average per-acre revenue for the insured crop falls below the insured's "trigger revenue."

A former crop insurance agent, Grabanski says the government wrote the policy wrong and "screwed up," but he hadn't anticipated a big payday on the insurance. "The government can do whatever they want and there are no repercussions." He says the case unfairly destroyed his credibility. He adds that other similar cases in Colorado, were resolved earlier, but his partnership was "blackballed" because it is from out of state.

Grabanski wasn't able to say how much of an indemnity would come to him, but said, "It'll get a lot of people back some money."

Stephen D. Taylor, an assistant U.S. attorney for the District of Colorado, who argued the government's case, did not immediately return phone messages from Agweek.

From the beginning

In 2008, Tom and Mari Grabanski and three other married couples in North Dakota formed Colorado Farms to purchase farmland. In February 2008, four of the Colorado Farms partners -- Brian, Ranell, Jeffrey and Amanda Hanson -- formed the second partnership called Hanson Colorado Farms to lease the farming of land acquired by Colorado Farms. The Hansons had no experience with farming or farm management and Grabanski, who had experience, connected them with Paul McGeary, an agronomist, who assisted as a shared employee.

In March 2008, Hanson CF applied for GRIP insurance for 30,000 acres of corn in Baca County. In April 2008, the rent finalized to $40</money> per acre on 11,000 non-irrigated acres and $150 per acre on 1,500 irrigated acres -- a total of $885,000, due Dec. 1, 2008.

Colorado Farms paid the expenses, managed by McGeary. On June 23, Farm Credit Services provided a $3.5 million loan to Colorado Farms, and a separate $1 million operating loan to Hanson CF. Both loans were secured by the same property, personally guaranteed by the Hanson CF partners.

In July 2008, Hanson CF reported it had planted 10,840 acres of corn between April 19 and June 2, and certified it had a 100 percent interest in the insured crop. Baca County then had a drought. Grabanski sold some irrigated corn on the acres to apply toward input expenses. On Sept. 5, Hanson CF filed for a loss on the 10,840 acres. The issue was referred to the RMA. In November 2008, the Farm Credit loans were restructured as one loan, with Colorado Farms as the sole borrower.

The RMA denied the claim, saying the partnership did not have an insurable interest in the crop, had failed to provide records, and hadn't followed good farming practices. In June 2010, Hanson CF lost an appeal with an RMA hearing officer. The company lost another with USDA's National Appeals Division director in February 2011. Hanson CF filed suit in March 2011, asking courts to overturn both the RMA decision and the director review.

"In sum, there is no legal or factual basis for the director's conclusion that Hanson CF bore no financial risk for loss of the 2008 corn crop," Matsch wrote. He said that on June 18, 2012, the plaintiff and defendant agreed to abide by the insurability decision of the court. Match affirmed the withholding of payment on 3,594 acres planted to non-irrigated corn on newly-broken ground, without a fallow period.

___

(c)2012 Agweek Magazine (Grand Forks, N.D.)

Visit Agweek Magazine (Grand Forks, N.D.) at www.agweek.com

Distributed by MCT Information Services

Wordcount:  728

Advisor News

  • Why federal retirement benefits are more complex than advisors realize
  • Why timing the market is still a retirement mistake and what to do instead
  • Business owners may be overlooking a key part of their financial picture
  • How smart investments prepare clients for inflation
  • Amid slew of corporate tax ideas, Newsom chose one likely to hit people’s premiums
More Advisor News

Annuity News

  • Best’s Special Report: U.S. Life/Annuity Industry Sees Bottom-Line Growth Despite 18% Decline in Total Income in First-Quarter 2026
  • Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
  • Fortitude Re Completes $500 Million FABN Issuance
  • Reframing retirement income for greater certainty
  • Jackson Introduces Dow Jones Industrial Average Index Option, Flexible Premiums, Six-Year Rate Guarantee in Latest Registered Index-Linked Annuity Launch
More Annuity News

Health/Employee Benefits News

  • NATIONAL BRIEFS NATIONAL BRIEFS
  • Senate sends revenue-raising package taxing software, health plans to Newsom
  • Spotlight on Climate: The good news is that you're alive
  • NC Senate moves forward Medicaid bill tightening oversight, restoring some access
  • Kentucky shows little progress in Kids Count survey
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of Everlake Life Group Members
  • Industry experts warn NAIC: Fix flawed IUL illustrations now
  • InsuranceAUM.com Celebrates a Historic 5th Annual Insurance Investment Executives’ Meeting in Chicago, Honoring Outstanding Industry Leaders and Spotlighting Next Event in Austin
  • Pacific Life Launches Income Horizon™ Collective Investment Trust Series, Transforming Lifetime Income into an Asset Class
  • AM Best Affirms Credit Ratings of Hyundai Marine & Fire Insurance Co., Ltd.
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Maximize Your FIA Case Results
Learn a repeatable process to review, reposition, and present FIA opportunities with confidence.

Aim higher during Annuity Awareness Month
Raise the bar with our diverse portfolio of Ascend annuities, backed by superior financial strength

You Could Be Losing Up to 20% of Your Commissions
GreenWave helps you find, fix, and prevent commission errors.

True Independence Means Having Choices
Cambridge offers flexibility, stability, proven tools—no private equity strings attached.

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

Looking for stronger rates, amplified growth & real results?
Sentinel's Accumulation Protector Plus℠ Annuity is for clients wanting more from retirement planning

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet