After you report your production each year, your agent keys your production report into the system. Once complete, he or she will send you a copy of your updated actual production history (APH). This document shows up to 10 years of history on the various crop insurance units that make up your farming operation.
Main point of this post — You should carefully look your APH every time you report your production!
Here is an example on why you should carefully review your APH every year:
I was reviewing the production of a new insured that was split 50/50 as a joint venture, so the production should have been identical between the producers over all 10 years of history. I found on multiple years and units where the production was keyed into the system incorrectly by the previous agent. The worst unit had a digit missing on one of the older years — 25,575 bushels corn on one, but 2,987 bushels of corn on the other. This is a simple human error, but after factoring in the trend adjustment, this error dropped the approved APH by 12 bushels!
Most of you reading this are probably thinking – “Let’s fix it!” It can be done, but hard copy evidence (assembly sheets, scale tickets, etc.) of your production for that unit is required. Depending on your records, this can be a difficult task if it is production from 10+ years ago.
Any data entry that requires human input into a system has the chance of error, and crop insurance production is no different. Keying mistakes happen! Claim situations require you get every dollar possible to help cover a short fall, so review your APH to ensure a simple error isn’t costing you more money than it should.