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Honored Advisor
Posts: 17,365
Registered: ‎05-13-2010
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Crop insurance fraud

There`s apparently a common practice of what they call "acreage shifting" where a farmer has a little above APH yield on a few farms and a little below on others and then reports bushels in a way that he collects off of every farm.   I don`t know how they get busted, unless an adjuster was looking over their shoulder as they harvested, perhaps yield monitor info downloaded into the "cloud" and that busted him?

 

I have "enterprise units" to get a cheaper premium which would not make that cheating possible.  That`s probably why enterprise units are cheaper, because of a little less fraud potential.

 

But this acreage shifting has been a pretty much open secret around to the point you are called a fool for not doing it.  One guy collects on crop insurance every year and this is a area of usually very good yields.  One highroller bought crop insurance from the agency that his wife worked and they scammed the insurance company.   But they claimed they were both koo koo and checked themselves in the nuthouse, now it`s business as usual buyin` and rentin` land and machinery and all kinds of swell stuff like nothing happened.  I guess if you think you`re in trouble, check yourself in the nuthouse and you get by.

 

https://wqad.com/2018/11/19/orient-man-must-pay-40k-after-federal-crop-insurance-fraud-conviction/  

 

According to the DOJ, in 2014, Campbell obtained crop insurance for two farms from an insurance company that was insured by the Federal Crop Insurance Corporation, which is a government corporation.

“The Federal Crop Insurance Corporation reimburses insurance companies for the payments made to policyholders under the Federal Reinsured Crop Program”

The DOJ says, Campbell, “crop shifted”. Crop shifting occurs when a farmer underreports production in one field in order to reach the percentage of loss required to receive an insurance payout from their crop insurance policy.

Campbell “shifted” production from one farm he owned to another by reporting that several thousand bushels of grain were harvested from one farm when he knew that those bushels were actually harvested from his other farm.

According to the DOJ Campbell also hid production by not reporting to the USDA or Federal Crop Insurance Corporation several thousand bushels of corn sold in his son’s name. He then received insurance payments fraudulently.

As a result, Campbell has been sentenced to: