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Mutual Announces Resolution to FSA Disaster Payment Issue

LAKELAND, Fla. (August 27, 2007) – Florida Citrus Mutual is pleased to announce that the U.S. Department of Agriculture (USDA) has reached an equitable resolution to the issues surrounding the 2004 hurricane disaster payments.

In recent weeks, Farm Service Agency (FSA) sent many citrus, vegetable and nursery growers letters saying they may have to pay the disaster money plus interest back if certain guidelines – mostly dealing with crop insurance – had not been met. The refunds would have reached into the tens of millions of dollars.

Under the proposal announced by the USDA, producers can avoid having to pay refunds by providing FSA with proof of 2008 federal crop insurance, or NAP coverage. If the sales closing date or application closing date for 2008 crops has passed than evidence of 2009 coverage is acceptable.

In other words, if growers get crop insurance now they won’t have to refund the disaster payment.

“Florida Citrus Mutual would like to personally thank USDA Secretary Johanns for measuring the facts in this case and making a fair decision,” said Michael W. Sparks, Executive VP/CEO of Florida Citrus Mutual. “We also acknowledge the hard work of the Florida Congressional delegation including Senators Martinez and Nelson, Congressmen Putnam, Boyd, Mahoney, Feeney and Buchanan as well as the leaders of other Florida commodity groups.”

Growers who have already refunded disaster payments will be able to get it back by providing FSA with the same insurance documentation. Sparks suggested growers contact their county FSA office immediately to start the process.

If you have any further questions please call Mutual’s Grower Affairs Division at (863) 682-1111.

Florida Citrus Mutual, founded in 1948 and based in Lakeland, is the state’s largest citrus growers organization with more than 8,000 grower members. The Florida citrus industry employs 90,000 and has a $9 billion economic impact. Please visit www.flcitrusmutual.com.

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