Aageson Grain v. United States Department of Agriculture

FACTS

Between March 17, 2004 and May 19, 2004, the Montana FSA denied the 2003 Noninsured Crop Disaster Assistance Program claims of Fairchild Farms, Inc., Aageson Grain and Cattle, and R Land, Inc. because it was Montana’s policy that all perennial grasses were not covered during their first year. Each farm filed appeals with the NAD. The NAD consoli- dated their appeals for a hearing on October 27 and 28, 2004. At the hearing, the FSA was represented by two program spe- cialists from the Montana FSA, Leonard McArthur, and Patri- cia Soares. On November 26, 2004, the Hearing Officer issued his decision overturning the FSA’s denial of benefits to the farmers, concluding that the Montana policy “goes beyond being over-restrictive and actually avoids the require- ment for NAP coverage.” The FSA did not request review by the Director of the NAD, making the Hearing Officer’s deci- sion final on January 11, 2005.

The farms applied for an award of attorney’s fees and expenses under the EAJA totaling $17,943.84. The NAD refused to consider the application, stating that “[i]t is the position of the Department of Agriculture that EAJA is inap- plicable to NAD proceedings, except as…