Hanson Colorado Farms Partnership v. Vilsack, No. 11-cv-00675-RPM, 2012 U.S. Dist. LEXIS 93423 (D. Colo. Jul. 6, 2012)

(judicial review of agency decision denying crop insurance indemnification to general partnership; partnership had lease agreement with separate partnership of which all partners were also members; partnership also used farm manager who assisted both partnerships in acquiring land and making agronomic decisions; partnership sought recovery after drought destroyed corn crop; claim denied because agency held partnership did not have insurable interest in crop, did not provide access to records, no interest in certain acres at time insurance attached, and good farming practice had not been followed; partnership appealed to director who upheld denial; on appeal, court gave no deference to agency interpretation that person claiming 100% interest in crop required to show all four requirements: that it produces crop, exercises managerial control, makes credit arrangements, AND owns farming equipment; court held partnership established proof of managerial control through agency relationship with farm manager and bore financial risk for crop; held director’s determination the partnership had no bona fide interest in crop was arbitrary and capricious; other issues on appeal handled through stipulation; court ordered indemnification for all applicable acres).