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Advisor

crop insurance claims????

Last year producers from parts of the US that , unfortunately had crop losses,  were discussing the difficulties and cautions involved with crop insurance losses. I remember one issue was an automatic audit of some sort for claims over a certain level. Can some of you guys that went thru this help educate some of the guys new to this procedure?? How would you handle harvest to simplify or clarify the losses? I'm not encouraging dishonesty, just trying to educate the rest of us into not screwing up or creating our own headaches. Personally, I still have hope of not having a claim, but the forecast and the fact that it is just mid-july are not helping any. We're not "toast" in nia. yet...

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Contributor

Re: crop insurance claims????

The automatic audits are triggered by a dollar amount of the claim. I am not sure what that amount is this year, I think it used to be 100,000 but it may have been raised. During an audit it is possible they may want to see 3 years of yield records.

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Veteran Advisor

Re: crop insurance claims????

I spoke with an ex-Cargill guy who is now in the crop insurance industry yesterday..

 

couple of things he told me:

 

1) That $100K threshold for audit is being moved to $200K

 

2) If you believe that your claim will be at $500K or higher----then if you want to harvest silage, you will have to have your local adjuster as well as a rep from RMA involved in that adjustment

 

I believe that $500K audit is the one that gets us all the requests for a full three years worth of data

 

Also asked him how well the industry was set up to handle the massive amount of claims coming---nervous laughter was what I heard, but that is also what I expected...

 

** Now, what you as a farmer can do----don't call us up the day before or the morning of an audit wanting us to provide you with three years worth of settlement documents, and oh by the way, I'm going to be there to pick them up in 30 minutes...since we already provided all this information to you with payment, we now charge $25 per crop year to create this information......as you can imagine, some of these big ones are pretty hefty.....

 

Best to be planning ahead and be looking like a professional operation when you meet these folks....they have lots of headaches, too

 

 

 

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Veteran Advisor

Re: crop insurance claims????

My crop insurance agent said that when you haul a load into town, if we thought there might be a loss, was to write down, right on the ticket, which field the crop in that load came off of, and whether it was irrigated or dryland.

Makes an audit go much smoother, when you have some sort of notation of where every load came from.

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Senior Contributor

Re: crop insurance claims????

That's why I like to deal with local coops cause you call them up and say I need my last three years of bushels they will print them right up for you. All that information is right on there computer. Why would you charge someone a 25 dollar fee if they are a loyal costumer that's what happens when some of these companies get to big and your just a number.
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Senior Contributor

Re: crop insurance claims????

Never been through an audit but even to turn in a claim you need your tickets or bills where you bought seed, cemicial and fert. Only way you need your yields is if you are insuring above county T yields which I assume most in the Midwest are.
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