High insurance costs worry horse trainers

HOLLY HILL, S.C. -- South Carolina is home to almost 50 horse farms where thoroughbred owners from across the nation send their million-dollar animals for training. But high workers' compensation costs could cause some trainers to seek greener pastures.

"I just can't afford to keep paying these prices," said Jane Dunn, owner of the Holly Hill Training Center. "Especially not when I can find a more insurance-friendly state willing to do business with me."

About 90 horses a year are brought to Holly Hill and in the past 10 years there have been four accidents on the farm. The worst came when a rider broke a leg.

As a result, Dunn's annual workers' compensation bill rose above $80,000, nearly four times what she had been paying.

"I think we are in real danger of losing a lot of talented people," said Lee Christian, president of the South Carolina Thoroughbred Owners and Breeders Association. "And that would be a shame, because not only would we lose great horse people, those small communities would lose a major employer."

Dunn's farm once employed 60 people and had a payroll of more than $550,000. But last year she had to lay off 27 workers to offset the insurance increase.

South Carolina has one of the nation's lower workers' compensation rates, but some businesses are covered by the Assigned Risk Pool because the jobs are considered so risky private companies won't provide coverage.

Every state has the system, but South Carolina is one of 16 that increases premiums for those in the Assigned Risk Adjustment Program based on severity of claims.

After the accident involving the rider and the broken leg, Dunn saw a 41 percent increase for the basic Assigned Risk Pool and a 47 percent Assigned Risk Adjustment Program increase.

"I have a record that I would put up against anyone," she said. "Accidents happen. That's why we have insurance. But at these rates, I can't afford to keep my business here."

She is considering moving to either Florida or Kentucky, which do not levy the Assigned Risk Adjustment Program fee.

Frank Smith, owner of Elloree Training Center, says he will stay. He trains about 125 horses a year and last year paid more than $60,000 in workers' compensation, although in some years the premium was almost $100,000.

"It's not much better anywhere else," he said. "That insurance will just eat you up. If anybody gets hurt, you just better get ready to pay."

RICHMOND, Va. -- About halfway into the growing season, Virginia farmers are looking toward a good year as crop conditions are generally good to excellent in much of the state - a welcome change from the drought of 2002 and heavy rains of 2003.

Commodity prices, particularly for small grains and soybeans, have been good although prices have started to drop off a bit in recent days on the strength of a strong Midwest crop report.

"We are hoping and praying for good yields, and hopefully farmers will be in a position to ... bounce back some," said Suffolk Extension agent Rex Cotten.

The latest weekly crop summary from the Virginia Agricultural Statistics Service shows that moisture levels are adequate in 71 percent of the state, less than adequate in 13 percent and greater than adequate in 16 percent. A few spots in southeast Virginia are experiencing a little excess moisture, Cotten said.

The reports do not encompass the rainy weekend throughout most of Virginia.

Summer potatoes are faring the worst from the wetness, but only 15 percent of that crop can be classified in poor or very poor condition. Other crops experiencing some stress are apples (6 percent), nonalfalfa hay (6 percent) and burley tobacco (18 percent).

For the most part, the progress of this year's crops also is ahead or in line with five-year averages because of higher-than normal-temperatures and plentiful rainfall in May, Cotten said.

Colleen Calderwood, a plant specialist in the Hanover County extension office, said all the farmers she has talked with are satisfied with the growing season. It's been dry enough to work the fields, but rain has been timely, Calderwood said.

"It's good to see prices up a little bit and the outlook on yields pretty good, said Jim Belote, the farm agent in Accomack County on the Eastern Shore. "We haven't seen those coincide for some time."