“I get that question a lot this year,” said the administrator of USDA’s Risk Management Agency, responding to a question about whether his agency and crop insurance companies will be able to handle expected losses from the drought. Touring crop damage in Missouri recently, Bill Murphy told Brownfield Ag News that crop insurance holders need not worry about coverage in the event of loss. “We’re fully funded,” he said.
In the event of large claims, Murphy says the audit trigger has increased. It used to be that a $100,000 claim earned a closer look from the government, but now it’s $200,000.
And Murphy advises that before anything is done to a damaged crop, farmers need to talk to their crop insurance provider.