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jd3660
Contributor

CROP INS AUDIT anybody been threw one yet?

   after burning up here in ks   we get to go threw a crop ins audit ! would like to hear experiences from anybody that has been threw one . I felt like it wouldnt be a problem Ive keep good production records. Like last year had the bins measured and use that to estimate bushels to report production of fields. My agent informed me the other day that they wouldnt be accept bin measurements  would need the tickets where we delivered. I said what about shrink some grain was delivered 8 months after measurement. I was told that there would be zero tolerance for error. So it seems to me they only ones that are gonna ace it are guys that deliverd strictly from field to elevator. 

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6 Replies
WCMO
Senior Advisor

Re: CROP INS AUDIT anybody been threw one yet?

 
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smokeyjay
Advisor

Re: CROP INS AUDIT anybody been threw one yet?

Been through an audit, but that was a couple years ago.  Several things are vita to obey, like segregate production in bins based on your farm units.  Never co-mingle production or they will throw everything out and reject your figures.  If you have segregated production properly and they don't accept your figures, then tell them to come and measure the bins for themselves.  Have your FSA records available as well as FSA papers showing crop shares and cash rent agreements.  They may be stingy on record keeping but if you are pretty careful in keeping records, you should be able to go through it okay.  Also, keep these records and tickets/ledgers for at least seven years.  That way, they can see your consistency and prove your ability to keep accurate records.

 

 

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sonoma72
Veteran Contributor

Re: CROP INS AUDIT anybody been threw one yet?

Yipper,

 

The other guys are correct, if you don't have elevator read out sheets for everything you are in for a real treat.  I paid one land lord with bushels, and they wouldn't take that either.   If you feed your grain, you will have extra fun.   What did I learn?   I will never turn in a claim over $100,000 ever again, unless I am wiped out.  It was the most irritating event for me in the last ten years.    What I find amusing, is they are always pushing for production long before the bins are empty, thus guaranteeing that you have error, unless you re report the next summer, but who remembers that. 

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jd3660
Contributor

Re: CROP INS AUDIT anybody been threw one yet?

 sounds bout as fun as holidays with the in-laws ! unfortunately for us we bombed total . We where off to a great start noreplant  shda been a warning ! mid june you couldnt find a ugly field of corn even the sloppys got lucky ! By jul 10 you couldnt find a decent looking field !   

 well anyhow my agent said it aint a big deal they ll jst reduce yield i said well lucky for you your commision dont chnge. 

Thanks for the headsup at least now i know what to expect 

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Nebrfarmr
Veteran Advisor

Re: CROP INS AUDIT anybody been threw one yet?

My brother was audited several years ago, and it was a big headache.  We asked the agent what we can do to make it easier.


1) If you store corn in your own bins, have the insurance send their own guy to measure your bins.  They will have his results in their own records, and you will have your copy.  This will make things WAY easier.

 

2)If you haul from field to bin, get a copy of the summary sheet from the elevator, and give it to your agent to put in your file.  Again, this way, you won't have to explain where it came from.  Make notes on the sheet, which loads came from which field.

 

3)After they measure your bins, and you get the corn hauled out, compare the two.  If they were in within a BPA or two of your actual crop produced, go with their measurements.  If you get audited, and change the bushels to your favor (they always seem to measure my bins just a tiny bit 'short') during the audit, you will have to go through the scale tickets, and verify again, why the bushels changed.  If you wish to amend your production records, take the delivery sheets to your agent, and have them make copies, and put them in your file so that both they and you have on record why the production changed.

 

I was audited a year or two ago.  I used the agencies own bin measuring service (they didn't charge me anything for it) to come up with production, and it all went smoothly.  Glad I used their guy, as I was feeding livestock at the time, and otherwise I would have had to produce a record of every bushel of grain that went to them, to verify the production.  By using their guy's measurements, there was no way they could argue the production.  The whole audit took maybe 20 minutes, most of which was just them asking things like 'Did you use our measuing service in the year 20XX?  Does this look like the results of the measurement?  Do you agree with the results?  Pretty painless, actually, but I had already jumped through the hoops ahead of time.

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GoredHusker
Senior Contributor

Re: CROP INS AUDIT anybody been threw one yet?

Here's what you have to know.  Soft records vs. hard records.  Soft records are bin measurements, gps records, load tallies, etc.  Hard records are scale tickets and settlement sheets.  Soft records can be used for production reports, but they are not allowed to be used for audits.  What really makes the process much easier is if you utilized the enterprise unit structure rather than the optional unit structure because enterprise structure will allow you to just use settlement sheets from when production was sold.  If the optional unit structure is utilized, then you will need scale tickets from each individual unit. 

 

Your agent isn't exactly correct.  There is a tolerance.  However, they will adjust your ten year average or APH if your scale tickets don't match what you provided on your production report.  I'm sure all auditors are different.  I went through one a couple of years ago.  I have fed production, but I weigh each truck load of corn that's put in the bin.  One just has to make sure a third party initials the scale ticket.  My audit was for the most part painless, but I utilize the enterprise unit structure.  I have heard that audits where one utilizes the optional unit structure are a lot more intensive. 

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