5 ^7V STATE DOCUMENTS «ov 8 197A ANNUAL REPORT OF THE DEPARTMENT OF AGRICULTURE TO THE GOVERNOR QF MONTANA HONORABLE THOMAS L. JUDGE f FOR THE FISCAL YEAR ENDED june 50, 1974 MO'r 930 East Lyp.dale Avenue Helena, Mon'.ofW 59601 Montana Stale Library 3 0864 1004 5731 9 «» e NOV 9 *83 STA^I 'K OF MONTANA I ) !•: l\\ iri'.M K.Vl' ok AC1R (CCL'l'CR !■: TELEPHONE: AREA CODE 406 449-3144 GEORGE LACKMAN COMMISSIONER CAPITOL ANNEX BUILDING 11 I'M. k.v.\, ;vi ( ) x r.\ v.\ : > i . i > i October 9, 1974 The Honorable Thomas L. Judge Governor of the State of Montana State Capitol Building Helena, Montana 59601 Dear Governor Judge; In accordance with Section 82-4002, R.C.M., 1947, and Management Memo 1-74-10, there is herewith transmitted to you the Annual Report of the Department of Agriculture for fiscal year ended June 30, 1974. Major accomplishments during the year include: *Montana agricultural interests were represented at twenty formal rail rate proceedings resulting in first year grain transportation cost savings of $1,800,000. *Forty-one rural development loans were initiated last year bringing the total case load to 87 loans at a value of $1,132,961. *A second grain market report telephone unit was installed to accomodate a 105 percent usage increase by producers and other grain interests. *The first comprehensive index of Montana Agriculture product suppliers has been published. *Eighteen special pesticide training sessions were conducted and 222 pesticide products were registered for use in Montana providing products and information necessary in agriculture production. *Continued application of specialized inspection concepts enabled expanded inspection service in nursery stock and fresh fruit and vegetables in addition to new research projects, all pro- viding greater consumer protection. *Registered 51 percent more apiaries than the previous year and through efficient inspection held the incidence of disease in hives to .07 percent. The Honorable Thomas L. Judge Page 2 October 9, 1974 *Serviced 3,051 hail insurance policies, an increase of 600, with a premium value of $1,310,956 the highest in a 57 year history. *Commercial feed and fertilizer product registrations increased by 17 percent to 2,050. Respectfully submitted, George Lackman Commissioner TABLE OF CONTENTS AGENCY ORGANIZATION , . LEGAL REFERENCES , , , MAJOR RESPONSIBILITIES , MAJOR ACCOMPLISHMENTS PROGRAM COST SUMMARY , , PROGRAM ANALYSIS , , , CENTRALIZED SERVICES RURAL DEVELOPMENT UNIT , , MARKETING AND TRANSPORTATION PESTICIDE CONTROL , , . . FEED AND FERTILIZER HORTICULTURE WHEAT RESEARCH AND MARKETING GRAIN LABORATORIES APICULTURE STATE HAIL INSURANCE I • I • • I ■ I ■ • • ■ ■ ■III! I I I I ■ ■ I I I I I I • I I I ■ ■ ■ ■ I I ■ I ■ I I I ■ ■ I I DIVISION • I ■ I ■ I COMMITTEE ■ ■ ■ ■ • ■ 1 5 12 12 13 14 16 17 18 20 22 23 24 PRINCIPAL OFFICERS AND OFFICES DEPARTMENT ADMINISTRATION GEORGE LACKMAN COMMISSIONER OF AGRICULTURE Capitol Annex Helena ELDON R. FASTRUP PROGRAM DIRECTOR Capitol Annex Helena CHARLES R. MEYER ADMINISTRATOR CENTRALIZED SERVICES Capitol Annex Helena CLAUDE B. CONANT ADMINISTRATOR RURAL DEVELOPMENT UNIT Capitol Annex Helena GENE J. CARROLL TRANS. SPECIALIST MARKETING & TRANSPORTATION DIVISION Capitol Annex Helena GARY GINGERY ADMINISTRATOR PESTICIDES CONTROL 1300 Block Cedar St. Airport Way Bldg. West Helena BURTON C. GINTHER ADMINISTRATOR FEED AND FERTILIZER McCall Hall Montana State University Bozeman ROY BJORNSON ADMINISTRATOR HORTICULTURE 1300 Block Cedar St. Airport Way Bldg. West Helena ROBERT BRASTRUP ADMINISTRATOR WHEAT RESEARCH & MARKETING COMMITTEE First National Bank Bldg. Great Falls GEORGE F. ANGERMEIER ADMINISTRATOR GRAIN LABORATORIES Grain Laboratory 821 17th St. W. Great Falls WILLARD KISSINGER ADMINISTRATOR APICULTURE 1300 Block Cedar St. Airport Way Bldg. West Helena MAURICE SMITH ADMINISTRATOR STATE HAIL INSURANCE 1300 Block Cedar St. Airport Way Bldg. West Helena -1- MONTANA WHEAT RESEARCH AND MARKETING COMMITTEE Lloyd Mosdal, Chairman Glen Moore Roger Johnson Clarence Ritter Edgar Keil Dana Fitzgerald George Skarda Residence Rapelje Willard Wolf Point Turner Conrad Power Denton Term Expiration August 20, 1976 August 20, 1975 August 20, 1976 August 20, 1977 August 20, 1977 August 20, 1978 August 20, 1979 EX OFFICIO MEMBERS George Lackman Dr. Joe Asleson Oliver Thorvilson Commissioner of Agriculture Dean of Agriculture Montana State University Grain Trade Representative Coast Trading Co., Great Falls -2- STATE BOARD OF HAIL INSURANCE George Lackman Commissioner of Agriculture Hollis G. Connors State Treasurer Residence James W. Stephens, Chairman Dutton Adrien Long Thomas A. Deveny Wolf Point Forsyth Term Expiration April 18, 1976 April 18, 1975 April 18, 1977 -3- o c o 0) (J 03 > *- o Q o L 1 | s h_ "5 E u v 0=5 S o c 2 o 6£ 2 < * o > j. a - c S 5 E o < >> o c • O «» *C — » ° o 1 8 3 > * o : w 5 . • 2 — c c ; o 3 c — «J - o O: 1 „4_ LEGAL REFERENCES The Montana Department of Agriculture is provided for in Article XII, Section 1, of the Montana Constitution and in Title 82A, Chapter 3, R.C.M. 1947. The duties and powers of the Montana Department of Agriculture are enumerated in Sections 3-106.1, 3-107, and intermittently to Sections 3-3401, 3-3402, 3-3404; Sections 90-201 to 90-206 (retransf erred Sections 3-3402 to 3-3407); Sections 16-1105, 16-1106; Sections 16-1708, 16-1708.1, 16-1708.2, 16-1708.3; Sections 27-213 to 27-245; Sections 82A-301, 82A-301.1, 82A-304, R.C.M. 1947. -5- MAJOR RESPONSIBILITIES Promote the economic growth and best interest of Montana's agriculture and allied industries. Promulgate and enforce regulations relating to the production and marketing of food and fiber products to serve the better- ment of producers and also serve the interest of the consumer of agri- cultural products. Administer and supervise these various program functions in a manner to best discharge the responsibilities of the Department to the public trust. -6- MAJOR ACCOMPLISHMENTS 1. Montana agricultural interests were represented at 12 formal pro- ceedings before the Interstate Commerce Commission and eight formal proceedings before the Montana Public Service Commission. Activi- ties of the transportation program during the first year of opera- tion achieved grain transportation cost savings of $1,800,000. 2. The Rural Development Unit has initiated 29 Junior Livestock Loans for a total of $100,000 and 12 Participating Rural Real Estate Loans totaling $180,000 during fiscal 1974. A total case load of 87 Rural Development Loans at a value of $1,132,961. 3. Usage levels of the Wheat Research and Marketing Committee's "tele- phone grain market news service" exceeded projections by 105 per- cent. A second telephone recorder unit has been installed to ac- commodate this increase. 4. The first comprehensive index of major Montana suppliers of agri- culture products was compiled and published to assist domestic and international market development. 5. Three major and 15 smaller training courses covering special aspects of pesticides were conducted. Two thousand, two hundred twenty two pesticide products were registered for use in Montana. Licensing of 614 applicators, 780 dealers and 700 retailers was completed. 6. Application of part-time field personnel and special training con- cepts provided efficient inspection for interstate shipment of 850,000 c.w.t. of certified seed potatoes and 2,260,000 pounds of sweet cherries. Also expanded inspection service of nursery pro- ducts, produce wholesalers and dealers providing greater consumer protection. 7. Registration of apiaries increased by 51 percent to 3,201 consisting of 78,298 hives. The incidence of disease in honeybee hives was held to .07 percent through an expanded inspection and education program. 8. The State Hail Insurance premium for fiscal 1974 reached $1,310,956, highest in its fifty-seven year history. Number of policies in- creased by 600 to 3,051. 9. Two hundred twenty separate continuing statistical report series with four special statistical reports were compiled as part of the Federal-State Cooperative Program. -7- MAJOR ACCOMPLISHMENTS CONTINUED 10. The number of feed and fertilizer products registered in- creased by some 17 percent to 2,050 over the previous year. Approximately two percent of the labels submitted required revi- sion before registration could be completed. Overall compliance index of feed and fertilizer regulations continues to improve. -8- PROGRAM INVENTORY AND COST ANALYSIS SUMMARY COST SUMMARY BY PROGRAM Increase FY 1973-74 FY 1972-73 (Decrease] I 103,703 85,406 18,297 256,639 133,255 123,384 1/ 81,570 2/ *39,595 38,705 890 *12,820 17,662 (4,842) 11 *29,155 -0- 29,155 £/ 81,328 55,001 26,327 5/ 83,725 78,515 5,210 146,782 128,567 18,215 242,719 172,196 70,523 6/ 148,704 180,839 (32,135) 7/ 29,170 5,848 23,322 1/ 208,127 -0- 208,127 9/ Centralized Services (Administration) Rural Rehabilitation Marketing and Transportation Agricultural Statistics Marketing Coordinator Transportation Pesticide Control Feed and Fertilizer Horticulture Wheat Research and Marketing Grain Laboratory Apiary Regulation Hail Insurance TOTAL PROGRAMS $ 1,382,467 $ 895,994 $ 486,473 * Marketing and Transportation Total -9- SUMMARY BY OBJECT Personal Services Operating Expense Equipment Capital Outlay Grants Benefits Transfer TOTAL BY OBJECT Increase FY 1973-74 FY 1972-73 (Decrease) 628,482 496,481 132,001 227,687 151,649 76,038 15,990 6,579 9,411 -0- 3,037 (3,037) 345,890 238,248 107,642 142,525 -0- 142,525 10/ 21,893 -0- 21,893 11/ $ 1,382,467 $ 895,994 $ 486,473 SUMMARY OF FUNDING General Fund Earmarked Revenue Fund Federal & Private Revenue Fund Federal & Private Grant Clearance Fund Rural Rehabilitation Revolving Fund Agency Fund 414,714 317,179 97,535 299,433 259,355 40,078 280,092 7,658 272,434 245,703 133,255 112,448 -0- 178,547 (178,547) 12/ 142,525 -0- 142,525 TOTAL FUNDING $ 1,328,467 $ 895.994 $ 486,473 -10- 1_/ Increase Loans 2/ Program Consolidation 37 Reduction FTE - Awaiting replacement 4/ New Program Established 7/1/73 5/ Includes $10,233.00 - EPA - Federally Funded Project 6_/ Increase Research Projects 7/ Reflects change in Grain Movement 8_/ First complete year of operation in Department 9/ Program transferred from Office of State Auditor 10/ Hail Losses 11/ Transfer from Federal & Private Grant Clearance to Federal & Private Revenue Marketing Service Account for operations of Rural Rehabilitation Program 12/ Legislative change from Revolving Account to Federal & Private Revenue -11- PROGRAM ANALYSIS CENTRALIZED SERVICES PROGRAM Goals Achieve effective Administration by providing management, planning and coordination of all activities in the department and maintain efficiency in Centralized Services Programs. Objectives Utilize available resources in the most efficient manner in providing services necessary for the benefit of the agricultural trade and the public. Establish and activate policies which will improve and strengthen operations within the Program Structure. Evaluation Projects initiated resulted in greater control over operations; forms and policies were revised and implemented; and as a result, the Agricultural Sector had a better understanding of departmental procedures, communicative processes, and regulatory functions. Agricultural business and the public have and are now partici- pating with the department in providing maximum services by being in- volved in the promulgating of rules and/or regulations as provided by law, which regulate their business. Result is: A close working relationship with interested parties which will enhance the well being and economies of the Agriculture Sector in Montana. -12- PROGRAM ANALYSIS RURAL DEVELOPMENT UNIT PROGRAM Goal To make loans to farmers, ranchers, and farm oriented youth organ- izations, to improve rural communities where the majority of people are of low income. Objective The Rural Development Unit provides financial assistance in the form of loans and or grants to the children of low-income families to initiate worthwhile projects; also, participating loans are made to purchase or improve farms ranches, and provide assistance when appro- priate for Rural Development projects; and financial assistance to students to attend college or Vocational Technical Schools, as members of future farmers, 4-H groups or other farm youth organizations. Evaluation Twenty nine Junior Livestock Loans have been made for about $100,000, 12 Participating Real Estate Loans have been made for $180,000 since the Spring of 1973. As of January 31, 1974, we had 39 Insured Notes with an outstanding principle balance of $828,821. There are seven Direct Real Estate Loans with an outstanding balance of $24,140 that were made with Rural Rehabilitation Fund. We have made a total of 41 loans since the Spring of 1973, we have on hand 39 Insured Notes and seven Direct Real Estate Loans. This makes a total case load of 87 now being serviced by this division. We have not made a Student Loan as of this date but have a $2,000 loan in the process of being approved. One of our problems at the present time is the shortage of funds on hand to make any new loans. The interest on Insured Notes is at a lower rate than the current interest rate. Therefore, we will probably be unable to sell any of our Insured Notes until such a time as the interest rate becomes more favorable so that purchasers may become more interested in purchasing the Insured Notes we have on hand. Until we are able to sell some Insured Notes, the only funds we will have for making loans will be if some of our present loans are paid in full and when payments are made on our current loans. We had hoped that adequate funds would be available so that we could make a few student loans this Fall. We believe that progress has been made in reinvesting the funds that were invested in F.H.A. Insured Note Program. -13- PROGRAM ANALYSIS MARKETING AND TRANSPORTATION DIVISION PROGRAM Goals Provide marketing service requirements enabling efficient mar- keting of agricultural products, improved economic returns and availability of quality products. Ensure the availability of adequate and efficient transportation service at just and reasonable rates and charges. Collect, prepare, and publish agricultural statistics by county and to cooperate with the United States Department of Agriculture in collection of selected agricultural statistical data. Objectives Develop new and expanded markets for Montana agricultural products. Collection and dissemination of specialized marketing information; maintain pertinent statistical data base and reference source. Cooperate with individual and collective interests in marketing research projects. Provide transportation expertise for evaluation and solution of present and future problems. Represent Montana agricultural product shippers at administrative hearings before state and federal transportation agencies. Maintain and up-grade a data base, as well as reference and re- source materials, reflecting Montana transportation statistics. Design and conduct appropriate surveys to develop needed data, employing advanced procedures and data processing techniques. Provide expertise and technical capabilities to identify and provide specialized statistical needs. Evaluation Designed, compiled and published a comprehensive index of major Montana suppliers of agricultural and horticultural products to assist in expanded domestic and foreign sales. -14- PROGRAM ANALYSIS MARKETING & TRANSPORTATION DIV . PROGRAM CONT. Expanded activities in international and domestic market develop- ment programs; sponsored a seminar on foreign market development for in-state interests, represented Montana products through participation in the 1973 U.S. Tokyo Food Fair and All Asia Trade Mission, cooperated with Montana Beekeepers Association in a pilot project for domestic honey sales promotion. Special resource information series on the major agricultural sectors within the state were prepared and presented specific high level foreign trade teams for select distribution within several foreign countries. A grain transportation cost savings of $1,800,000 was achieved. An operational transportation program was initiated. Montana agricultural product shipping interests were represented at twelve (12) formal proceedings before the Interstate Commerce Commission and eight (8) formal proceedings before the Montana Public Service Commission. As part of the Federal-State Cooperative Program, contributed to publication of 220 separate statistical report series. Collection of statistics, assembly and publication of the follow- ing SPECIAL STATE reports: CATTLE ON FEED BY COUNTIES, This fills numerous requests for localized data on this growing industry. MONTANA WHEAT AND BARLEY MOVEMENT SUMMARIES, These provided the only available data on grain movement by mode and direction. UTILIZATION OF MONTANA WHEAT PRODUCTION, A summary of Montana wheat used for feed, seed, flour and export. STOCKS OF GRAIN BY CLASS; VARIETIES OF WHEAT, Both serve as an aid to meeting specifications of wheat buyers. -15- PROGRAM ANALYSIS PESTICIDE CONTROL PROGRAM Goals The program goal is to protect man and the environment from any potential acute or chronic pesticide injuries or damages. Objective Continue to improve program of pesticide product registration and licensing of applicators, dealers, and retailers. Implement educational courses to improve qualifications of com- mercial pesticide applicators and other interested parties. Develop a comprehensive study manual and examinations to test pesticide applicators and dealers. Conduct a survey of the cherry production area in Northwest Montana to define problems with cherry pests and the use of pesticides. Evaluation Registration of 2,222 pesticide products was completed. Licensing of 614 applicators, 380 dealers, and 700 retailers. Three major educational courses for ornamental weed and cherry applicators were completed (137 individuals) along with 14 other smaller training courses. An "M-44" training program was also initiated. A study manual has been developed to assist all types of appli- cators in improving their knowledge of pests and pesticides. The cherry survey was completed which has resulted in an improved regulatory and service program. -16- PROGRAM ANALYSIS FEED AND FERTILIZER PROGRAM Goals Assure the Montana purchaser of commercial feeds and commercial fertilizers that these products will meet the guarantees made for them and that they are properly labeled. Objective Review the labeling for all commercial feed and fertilizer products to be marketed in the state and register only properly labeled products. Inspect manufacturing facilities to see that good manufacturing practices are being used. Randomly sample products offered for sale throughout the state for chemical analysis to determine that guarantees are being met. Make accurate chemical analysis for most components guaranteed in commercial feeds and fertilizers. Pet foods now come under the surveillance of the commercial feed law starting January 1, 1974. Evaluation Approximately two per cent of the labels submitted for registra- tion require revision before registration can be completed. Approximately 0.1 per cent of the products that registration is requested for are withdrawn by request rather than comply with labeling requirements. Many improper manufacturing practices are corrected during inspec- tions before serious problems occur saving both consumers and manufac- tures large financial losses. The overall compliance index on commercial feeds and fertilizers has gradually improved for several years. Early results indicate that the pet food compliance index is not as good. Chemical analitical competency has been improved in the micro- nutrient and toxic element analitical areas. Feed and fertilizer products registered increased by some 17 percent to 2,050. -17- PROGRAM ANALYSIS HORTICULTURE PROGRAM Goals To establish insect control programs to prevent the introduction and spread of plant pests into and within the State. To control the quality of home grown and imported fresh fruits and vegetables nursery stock, and dry edible beans merchandised to Montana Consumers. To aid in the marketing of horticulture commodities. Objective Develop procedures to detect and eliminate Cherry fruit fly infestations and to intercept infested fruit before it enters the trade. Continue to develop inspection procedures required to enforce regu- latory laws to control the marketing of fresh fruits and vegetables, nursery stock and dry edible beans. Continue to assist USDA - Agricultural Marketing Service in the marketing of Agricultural products. Continue to assist USDA - AHIS on the development of insect and disease programs. Continue training programs and staff meetings to upgrade inspector expertise necessary to maintain program objectives. Evaluation Conducted a Cherry fruit fly survey to determine the earliest date of adult Cherry fruit fly emergence so that orchardist could be advised of the most effective time to apply recommended controls. Inspected for interstate shipment 850,000 cwt of certified seed potatoes and 2,260,000 pounds of sweet cherries according to USDA grade requirements. Performed state wide cooperative USDA - APHIS insect detection sur- veys for Gypsy moth and Japanese beetle insects. -18- PROGRAM ANALYSIS HORTICULTURE PROGRAM CONT. Provide consumer quality protection by performing inspections at 342 licensed nurseries, 30 licensed produce wholesalers and seven itinerant merchant produce dealers. Cherry fruit fly survey provided beneficial information as to the date adult flies first appeared thus providing a basis for timing spray applications for Cherry fruit fly control. Identified and recognized critical regulatory problems in the nur- sery industry will assist nurserymen in insect and disease control. Increased responsiveness to consumer complaints on horticultural product quality has eliminated the marketing of inferior horticulture products to consumers. -19- PROGRAM ANALYSIS WHEAT RESEARCH AND MARKETING COMMITTEE PROGRAM Goal Encourage and promote intensive, scientific, and practical research into all phases of wheat culture and production, marketing and use. Objectives Continue to support wheat research at Montana State University. Provide information to wheat farmers in Montana relative to wheat crop, sales, use and markets. Assist in developing both foreign and domestic markets. Continue efforts to establish adequate transportation at equitable rates for Montana grain. Evaluation The division hosted several foreign trade teams and individuals interested in Montana's wheat industry. The need for more and better quality information increases each year and the annual Crop Quality Survey was given wide distribution, again, this year. The division supported our transportation specialist in seeking reductions, or at least stabilizations, of freight rates. The division supported wheat research projects at Montana State University. Projects supported were: Developing a more reliable soils test. Improvement of wheat varieties for all Montana areas. Control of wheat diseases such as rust, root rots, and Septoria. Testing procedures on milling and baking qualities of Montana wheats. Funds were provided to the five research centers, in Montana, in order for them to carry out, more efficiently, research for wheat. Developing a high-lysine barley for growing under Montana conditions. -20- PROGRAM ANALYSIS WHEAT RESEARCH & MARKETING COMMITTEE PROGRAM CONT. Wheat producers were kept informed of the division's activities through a news letter, news stories to media, and appearances at wheat grower meetings. Wheat Day was observed at the State Fair in Great Falls, A 4-H scholarship of $200 was provided the Montana 4-H Foundations. A state "Day of Bread" was observed. The division cooperated with the Montana Cooperative Extension Service in providing wheat nutrition information. The efforts of the Wheat and Wheat Foods Foundation were continued. Cooperative efforts involved all of Montana's major general farm organizations, commodity groups, grain merchandising officials, Agricultural Stabilization and Conservation Service, U. S. Congress members and representatives of the State and Federal Administrations. The division again cooperated with the Cooperative Extension Ser- vice in co-sponsoring a traveling marketing seminar to the Pacific Northwest to observe export operations. The Montana Wheat Research and Marketing Committee continued its 24-hour toll free market report. This service has received wide use from producers, country elevator operators, bankers, and other pro- fessional people. -21- PROGRAM ANALYSIS GRAIN LABORATORIES PROGRAM Goals Provide official, unbiased grain grading, protein testing and quality information on U. S. Standardize Grains and Mustard Seed. Provide services to sample, checkload and checkweigh flour. To pro- mote domestic and foreign sales of Montana grain by furnishing quality data. Objective Employ acceptable laboratory techniques to insure accurate analysis. Maintain personnel licensed by USDA to grade grain according to U. S. Grain Standards Act; and sample, checkload and checkweigh flour accord- ing to USDA Marketing Service Standards. To cooperate with federal agencies and grain industry to achieve uniformity and compliance with federal grain standards promoting the orderly marketing of grain. Evaluation Volume of tests decreased during the fiscal year 1973-74 due to unusual high quality of crop. Large sales of wheat to Russia were made on average quality. It was the first time in many years that no premium was paid for high protein wheat. -22- PROGRAM ANALYSIS APICULTURE PROGRAM Goal Achieve and maintain a prosperous and thriving beekeeping industry. Objectives Through inspection, quarantine, and registration of apiaries, prevent the spread and incidence of disease in honeybee colonies. Prevent the overcrowding of bee pasture by registration of apiaries according to law. Disseminate information concerning proper management methods, disease control methods, etc., to insure an informed beekeeping industry. Cooperate with other states in the interstate movement of bees. Evaluation The incidence of disease found in honeybee hives was held to seven tenths of one percent even though the number of beehives and beekeepers have increased. There were 3,201 apiaries registered in FY 74. These apiaries were registered by 223 beekeepers (51% increase over FY 73) and con- sisted of 78,298 beehives (3.4% increase over FY 73). The low level of honeybee disease (0.7%) plus the increase in the number of beekeepers (51%) is considered to be due in part to the informational part of the program. A quarterly beekeeping newsletter is currently being published in cooperation with the Montana State Beekeepers Association to improve communication within the beekeeping industry. The number of hives requiring inspection for out of state movement during FY 74 more than doubled over FY 73 (210%). The number of hives imported into the state requiring inspection increased by 5% over the previous fiscal year. -23- PROGRAM ANALYSIS STATE HAIL INSURANCE PROGRAM Goals To provide crop hail insurance to Montana grain growers at a reasonable rate. Objectives Improve adjustment procedures by competent adjusters and pay proven losses in full. Evaluation Premium volume for 1974 is the highest in the fifty-seven year history of the State Board of Hail Insurance. This can only be accounted for by satisfied policyholders. Four additional counties have been established under the Hail Program. -24- MONTANA WHEAT RESEARCH AND MARKETING COMMITTEE ADDENDUM A MONTANA WHEAT RESEARCH AND MARKETING COMMITTEE Balance Sheet Annual Report Fiscal Year 1973-1974 Assets Cash Investments* $ 13,380.94 148,690.50 Fund Balance $162,071.44 Fund Balance $162,071.44 * $75,000.00 of the amount shown as investments is in Reserve MONTANA WHEAT RESEARCH AND MARKETING COMMITTEE Expenditures Fiscal Year 1973-1974 1973 July $ 2,016.18 August 11,876.53 September 14,176.34 October 12,110.82 November 29,210.85 December 11,159.96 1974 January 46,404.99 February 12,452.90 March 14,150.59 APril 33,543.67 May 12,247.40 June 56,385.77 GRAND TOTAL $255,736.00 MONTANA WHEAT RESEARCH AND MARKETING COMMITTEE Income Fiscal Year 1973-1974 1973 July August September October November December Wheat Assessments $ 35,223.71 20,965.19 39,384.86 17,391.11 17,634.41 Interest on Investments $ 1,251.75 729.36 1,123.00 1,087.83 826.95 Total $ 1,251.75 35,953.07 20,965.19 40,507.86 18,478.94 18,461.36 1974 January 19,908.38 643.95 20,552.33 February March 34,809.16 17,150.94 793.85 35,603.01 17,150.94 April 16,275.02 16,275.02 May 14,979.28 1 ,249.23 16,228.51 June 5,927.17 6 ,189.71 12,116.88 GRAND TOTAL $239,649.23 $13 ,895.63 $253,544.86 w w H H M s o o o z l-l H W *! OS cc a; x: U .H CO O C c CO < •H CO >s i-l « C < 00 CM vO CN -a- vO o 00 o i-H CN o CN OS CN •o o •H H T3 CU o D- •H u OJ m x: o- cn D. 4-1 r^ r~- 0> ON OJ 00 H t-H J3 c u •H • * U o H 00 3 cn e T3 >^ ■H cu i-H M CO c 3 3 0) 3 ►-) T3 u 3 ►OJ 1 0) 4-) 1 CD •H cu 3 T3 cu o C a CJ a OJ cu C CO > & CO rH cu rH CO OS W CO J3 pa 4J .. 4-1 c • « CO c 3 Q CO 3 o 3 W O u ►J CJ CJ CJ •< < MONTANA WHEAT RESEARCH AND MARKETING COMMITTEE Wheat Assessment Income and Refunds Annual Report for Fiscal Year 1973-1974 7-1-72 thru 6-30-73 7-1-73 thru 6-30-74 Income Refunds % Income Refunded Number of Refunds Average Refund $255,039.65 4,675.00 1.83 199 23.49 $253,544.86 2,746.13 1.08 120 22.88 MONTANA WHEAT RESEARCH AND MARKETING COMMITTEE Expenditures Fiscal Year 1973-1974 ADMINISTRATION - 21.45% Staff Salaries Employee Benefits Rent Office Equipment Maintenance Office Supplies Postage - 25% Telephone - Answering Service 100% Watts Line 50% Mountain Bell 25% Subscriptions Miscellaneous Committee Meetings Per Diem Travel MARKETING - 33.86% Dept. of Ag. Projects Quality Report Western Wheat Associates Travel Promotion Telephone - Watts Line 25% Mountain Bell 35% Miscellaneous Code-a-phone $34,165.77 3,918.71 2,412.00 1,122.29 347.25 1,259.30 256.64 272.00 172.25 286.06 308.60 2,593.18 4,495.00 3,255.25 $ 6,700.00 3,168.00 47,053.06 13,220.22 518.79 86.08 400.44 35.00 15,414.35 $ 54,864.30 $ 86,595.94 PRODUCTION RESEARCH - 35.60% MSU PROJECTS: Septoria Nordorum Improvement of Spring & Winter Wheat Varieties Research Centers Crop Response to Fertilizer Additives Soil Borne Diseases Wheat Stem Rust Travel $ 5,032.00 8,650.00 33,265.00 20,000.00 12,500.00 10,432.00 1,153.98 $ 91,032.98 - 2 - TRANSPORTATION - .38% Telephone - Mountain Bell 10% Travel 114.42 844.56 958.98 EDUCATION AND INFORMATION - 7.64% Wheat Scoop Public Relations Associates Travel Postage - 75% Telephone - Watts Line 25% Mountain Bell 30% 4-H Club Scholarship Day of Bread Promotion Miscellaneous $11,000.00 3,740.48 1,428.23 747.95 86.17 343.23 200.00 120.95 1,370.66 500.00 $ 19,537.67 REFUNDS - 1.07% $ 2,746.13 $ 2,746.13 GRAND TOTAL $255,736.00 STATE HAIL INSURANCE ADDENDUM B Performance Indicator 1972 1973 1974 Premium Charge $908,297.06 $1 ,042,822.42 $1,310,956.09 Policies Issued 2585 2651 3051 Loss Claims Filed 471 182 *573 Losses Paid (To date) $308,439.22 $ 142,574.36 *$ 764,559.30 Acres Insured 939,416 1,066,169.1 *1, 226, 094 Days with Hail 63 46 39 1% Paid to Counties $ 9,082.97 $ 10,428.82 $ 13,109.56 2% Paid to State $ 18,165.94 $ 20,857.64 $ 26,219.12 Surplus Funds Returned To Policyholders $526,812.00 . $ 855,163.58 ? *Estimated for 1974