Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, December 1, 1993                   TAG: 9312010100
SECTION: BUSINESS                    PAGE: B-6   EDITION: METRO 
SOURCE: GREG EDWARDS STAFF WRITER
DATELINE:                                 LENGTH: Medium

LAST YEAR, FARM INSURERS COULDN'T WIN FOR LOSING

Storm losses cost the insurance company $9.2 million, an unprecedented loss in the company's 43-year history, Executive Vice President Chuck Clement told delegates to the Farm Bureau's annual convention.

The Virginia Farm Bureau, the state's largest organization of farmers with 109,000 family members in 88 individual county farm bureaus, is holding its 68th annual convention this week at the Roanoke Airport Marriott hotel and Sheraton Inn Roanoke Airport.

March's "snow storm of the century" resulted in 5,000 claims for losses of $1.5 million, Clement said during his report on insurance company operations.

But that was only the first of a string of catastrophes.

A June 4 storm that swept through much of Virginia resulted in 4,000 cases of property loss in an eight-hour period and a total of $6.7 million in damage, Clement said. Then, on Aug. 6, a tornado struck the Petersburg area, creating another 500 claims and $1 million in losses.

The company, which normally averages about a 1 percent annual profit, had to dip into its reserves for $3 million to help cover a net loss this year of roughly 12 percent, Clement said.

But despite the loss, the company remains financially strong, he said, with $53 million in its surplus savings account.

Clement said the company must be prepared to change in the face of new laws and increased regulation.

Some changes that have already occurred, he said, include development of a special coverage for part-time farmers with small operations; expansion of workers compensation for seasonal labor, and a reorganization of the company's home office to improve service.

The company contributes about $4.81 million annually to the Farm Bureau's budget, Clement said.

Wayne Ashworth, a Pittsylvania County farmer and state bureau president, told delegates the Farm Bureau would ask Gov.-elect George Allen to retain Clinton Turner, as the state's commissioner of agriculture.

Turner, who was appointed by Gov. Douglas Wilder, has been an "outstanding" commissioner, "especially in communicating with the wants and needs of the small farmer," Ashworth said.

During the upcoming General Assembly session, the Farm Bureau will fight increases in workers compensation "that threaten our very existence," Ashworth said. It will also fight to keep land-use taxation programs in Virginia that protect farmers from escalating land prices, he said.