As harvest nears – questions about crop insurance and the ability to cover claims this fall come up more and more. Earlier this week Risk Management Agency administrator Bill Murphy made a visit to Indiana to take a closer look at the damage caused by this year’s drought and to answer some questions from farmers.
Murphy says the number one question he’s been getting is “Is RMA prepared for the potential claims this fall?”
“No doubt we’re going to see record losses this year,” he says. “From a budgetary standpoint there is no issue. Our act actually states ‘such sums as necessary from Treasury’.” Which he says means RMA can honor all claims that are submitted.
Murphy tells Brownfield in anticipation – there are some things farmers can do to be prepared. “If a producer has a claim over $200,000 then a company will do an actual history review (they will look at the farmer’s records that make up his guarantee),” he says. “They will look at one year of records and if there is no problem – they will drop it and move on, but if they see a problem they will need to look at 3 years of records.” If growers think they are going to have a significant loss Murphy suggests farmers gather their records now.
He says having that information ahead of time will make the claims process go a lot smoother for both the farmer and the adjuster.