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I would say 10%-15% is lost to insurance fraud. A lot of times when the crop yield is less than 50% of expected yield farmers will just disc the fields and clai
by cprayingmantis 10y ago
I would say 10%-15% is lost to insurance fraud. A lot of times when the crop yield is less than 50% of expected yield farmers will just disc the fields and claim 100% loss.
- SteveNuts 10y agoSource? Do the crop insurance companies not go out and verify the claim? Do they not correlate crop loss with other events in the area (flooding, high winds)?
- cprayingmantis 10y agoIt was just conjecture on what I grew up around. They do go and verify the claim but most of the time they won't fault the farmers if the field is already reseeded after all they need to make sure the cover crop comes in good if the main crop failed. There's a lot of insurance fraud in agriculture mostly because the companies don't have the resources to go and check every farm. And to your final point they do correlate it to natural disasters, those events are rarely as catastrophic as they're reported though.