Veteran Advisor
Posts: 1,726
Registered: ‎06-30-2010

Re: Crop insurance fraud

When guys like that cheat the system, the rest of us pay for it.  How guys like that get caught ranges from the most basic to high-tech. 


Basic red flags (not necessarily proof that anything nefarious is happening, but it raises questions) -- having a loss when nobody else has a loss -- having losses multiple years when others don't -- providing only scale tickets without summary/settlement sheets (or changing the info at the elevator so it doesn't match the original scale ticket) -- delivering grain in shares that are inconsistent with how the farm is rented -- delivering loads of grain from distant farms in questionable/illogical or mixed order -- using custom harvesters with no proof of cash payment -- using custom haulers with no proof of cash payment -- unreported grain sales in names of wife/kids, landlords, custom operators, suppliers, etc -- reported grain production inconsistent with area -- reported grain production inconsistent with yield maps -- obviously providing only partial information or mixed information sources -- farming some ground that is not reported to FSA when other ground is reported -- and so on.


On the other end of the spectrum -- it is amazing what the feds can figure out from "data mining" and satellite info -- comparing what is reported on crop insurance versus what is reported to other USDA entities, for example -- and they're not sitting there watching a guy via satellite, but they can certainly gather a lot of data from those flyovers to assemble and review for various purposes.  If necessary, the feds can prove when you were in the field planting or harvesting, including what dates you were performing activities in each field or location.  For a basic idea how this works, just look at the detail you can see in Google Earth sometime.