The money and manpower are in place to handle crop insurance claims from this year’s drought situation, says Bill Murphy, administrator of USDA’s Risk Management Service.
Murphy is encouraging farmers with crop insurance to contact their agent/company to be sure that procedures are followed that will allow claims to be settled effectively. The insurance company needs to be included before action is taken on a crop.
Money will be available to handle all of the claims, Murphy contends. He suggests that the insurance companies are in good financial shape and the government statute related to subsidy of crop insurance is stated as “funds necessary” to settle all claims.
“As a result of significant losses last year, the companies have a very strong, experienced workforce,” he adds.
While Murphy expects claims to be settled in a timely manner, things could take a bit longer this year due to the volume. Farmers have shown patience in the past and he expects it again “as long as they are assured that their claim is in process and there’s an estimated date of payment.”
Certain areas of the Corn Belt have not had many claims in the last few years and making a claim under current rules will be a new experience for many, which is a reason for farmers to contact their insurance agent early.