Crop Insurance Integrity Focus of Stepped-Up Campaign

NATIONAL CROP INSURANCE SERVICES

8900 Indian Creek Parkway, Suite 600

Overland Park , KS 66210

FOR IMMEDIATE RELEASE
May 24, 2006
Laurie Langstraat (913-685-2767)

Crop insurance Integrity Focus of Stepped-Up Campaign

OVERLAND PARK, KAN… The leadership of the Risk Management Agency (RMA) and the crop insurance industry met in Kansas City this week in an effort to strengthen their oversight of the Federal Crop Insurance Program.

The topics and the presenters on the agenda of this day and a half session discussed present methods of checks and balances along with new techniques on how to safe guard the program.

Data mining and satellite imagery, Special Investigative Units, combating white collar crime, ethics, and case examples were some of the topics.

Senator Pat Roberts (R-KS), Eldon Gould, Administrator of RMA, and Bob Parkerson, President of National Crop Insurance Services, kicked off the event. The FBI, the Office of the Inspector General, FSA, and state law enforcement officials were among the presenters.

A highlight of the two day working session was a demonstration of just how difficult it is becoming to hide fraud when every insured farmer, every crop insurance agent, and every adjuster are now under close watch from “data mining” and the use of satellite imagery.

USDA’s data mining efforts are becoming more effective every year, revealing patterns and relationships that raise red flags for investigators.

The ensuing investigations have already saved $450 million in losses, according to Dr. Burt Little of the Center for Agribusiness Excellence (CAE). CAE does RMA’s data mining.

The good news is that only about .0016 percent of all those involved in the crop insurance program may be involved in fraud, according to Little. The bad news is that that small number generates most of the news about agriculture’s most important safety net, and that news often drives the discussion during Congressional debates over ag legislation.

The intent is for these groups to meet each year to critique present methods and discuss ever-changing technology to help maintain the integrity of this nationwide safety net for agriculture.

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