“With the trend of larger and larger farms, the probability of triggering a $200,000 APH review becomes more of a possibility,” Lass said. “As a compliance field specialist, I find insureds are comfortable with the accuracy of their current claim. What concerns them most is the possibility of a three-year review of production records.”
Three-year reviews can be triggered for many reasons, including a high-dollar claim, conflict of interest, or other RMA-directed reasons. These reviews involve a compliance field specialist working directly with the policyholder to gather records and confirm that all information aligns with what was reported over the past three years.
Lass explained that the concerns he hears vary but are all tied to time commitments and record keeping. Insureds worry about remembering which loads came from which unit on the assembly sheet, if their load log is available, and if their feed records are in order. On many occasions, insureds ask him if they need to be present for the bin measurements, and how long that might take.
“With FMH Precision Solutions using planting maps, harvest maps, and a calibration report, all these questions and more are answered,” he said. “Each unit is recorded for acres and production with the calibration report to verify accuracy.
FMH can use a farmer’s precision data to simplify multiple crop insurance processes and increase the accuracy of policy records. Plus, the data is entirely electronic, which makes for easy record keeping and storage for the farmer. If an insured is already using precision data for acreage reporting, production reporting, or claims, FMH will likely be able to use that same data for an APH review – and compliance specialists can access it in FMH systems for even more efficiency.
“I recently completed a $200,000 APH review for a 10,000-acre corn farmer using his precision planting records in the system from the previous year. Because the precision records matched what was reported, the review process took one hour,” he said.
Lass explained that had he used traditional methods and paperwork, this review process would have taken days to complete.
"The benefits to the insured were: no bin measurements, no assembly sheets, no load logs, and no feeding records required. Because the records matched, there was nothing for the insured to review or sign. As a bonus, no contact was required with the insured or agent!"
- David Lass, Compliance Field Specialist