970008_Remission Request_20180604

STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL
COUNTY OF WILKES QUALITY
IN THE MATTER OF ASSESSMENT ) WAIVER OF RIGHT TO AN
OF CIVIL PENALTIES AGAINST ) ADMINISTRATIVE HEARING AND
CLIFTON HUTCHISON
STIPULATION OF FACTS
)
MARGIE HUTCHISON
PERMIT NO. AWD970008 ) FILE NO. DV-2018-0010
Having been assessed civil penalties totaling $4,306.27 for violation(s) as set forth in the
assessment document of the Division of Water Resources dated, February 28, 2018, the
undersigned, desiring to seek remission of the civil penalty, does hereby waive the right to an
administrative hearing in the above -stated matter and does stipulate that the facts are as alleged in
the assessment document. The undersigned further understands that all evidence presented in
support of remission of this civil penalty must be submitted to the Director of the Division of Water
Resources within thirty (30) days of receipt of the notice of assessment. No new evidence in
support of a remission request will be allowed after thirty (30) days from the receipt of the notice
of assessment.
This the
_ da]ASignature
2018
ADDRESS
TELEPHONE

Clifton G Hutchison
6501 Traphill Rd.
Traphill, NC 28685
5/28/2018
Miressa Garoma
Water quality Regional Operations Section
Division of Water Resources
1636 Mail Service Center
Raleigh, NC 27699-1636
RE: Request for Remission, Waiver of Rights to an Administrative Hearing, and Stipulation of Facts
Dear Miressa Garoma:
The following request is a remission for the assessed civil penalty of $4306.27 to Clifton & Margie
Hutchison in APS Case Number: DV-2018-0010. The assessed penalty is not feasible for the farm
operation to pay currently due to the financial distress of the farm in the economic conditions we
are in today. Currently, the dairy farm is operating at a deficit due to the dramatic decrease in milk
prices that have dropped from $19/hundred weight last year, which was a decrease over the
previous 3 years already, to a current price of $13/hundred weight. Along with decreasing milk
prices, feed prices have remained stable at approximately $300/ton. Essentially, it is costing more
to produce a gallon of milk than what we are being paid for the product. Also, due to the decrease
in the cattle market prices we cannot sell out of the dairy business or sale any portion of the cattle.
The prices have dropped from a year ago of $1.15/lb. for cull dairy cattle to a current price of $.35-
.40/lb. So as you can see we are operating at a shortage with most resources exhausted to even get
us thru the remainder of this year --which is when forecasters predict a possible upswing in market
prices. We do realize the mistake that was made and are working diligently to correct and prevent a
future mistake. I have included copies of the milk check from DFA and the feed bill from Purina to
justify the above mentioned operating costs along with a business credit card statement that is
used strictly for farm operations monthly to show expenses vs income. There is also a receipt
showing the purchase of grass seed along with 4 additional bags I had here on the farm which we
have now planted in the field where the spill took place. I've included multiple pictures to show the
field conditions and how we'are correcting the increased vegetation problem. However, the biggest '" t.1� "�
change we are making to correct this problem is working with the MRCS on building a new bacR''Fhis ?
will be a facility that allows for 100% confinement of the cattle so they will no longer be passing
thru the creek where the spill occurred. The NRCS has told us we will be responsible for a portion of
the construction costs which we do not know an exact number for our share yet but we must apply
any savings we can come up with in the next 6-8 months towards this expense. I am confident this
M

Miressa Garoma
5/28/2018
Page 2
amount will exceed the civil penalty we have been assessed by your department. Our hope is that
this penalty could be waived and applied towards the out of pocket expense of building the new
barn facility by the NRCS. It is possible the farm may have to attempt to borrow funds to help
construct the barn since we are depleting our resources to continue operations, in which case, we
would not be able to borrow for both the penalty fees and the additional construction costs due to
our limited borrowing power based on declining cash flow coverage.
We appreciate any assistance and your understanding of our financial situation currently. It is truly
unfortunate times in the farming industry from dairy, beef, grain, corn, etc.; all are facing
descending market trends that are putting farmers in major financial hardships until the markets
begin to bounce back, which we are hoping the dairy industry sees this upturn by year end and the
other markets hopefully will follow suit by year end. We will be glad to answer any additional
questions you may have or if you need any other forms or paperwork sent in, you may contact
myself by phone at [phone] or my son, Derek, who manages the farm, by phone (336) 469-
2000.
Clifton G Hutchison
Enclosure: 4 plus pictures of current field conditions