United Group Insurance

Adair County man sentenced in federal crop insurance scheme

Ag/Outdoor, News

November 19th, 2018 by Ric Hanson

The U-S Attorney’s Office for the Southern District of Iowa, reports an Adair County man was sentenced to three-years of supervised release for making a false statement in connection with federal crop insurance. A judge, Friday, also ordered 71-year old Carl Jeffrey Campbell, of Orient, to serve four months of home confinement, and pay a $5,000 fine, plus $100 to the Crime Victims’ Fund, and $32,440 to the United States Department of Agriculture (“USDA”) as restitution. Campbell was also ordered to serve 160 hours of community service.

Campbell pleaded guilty to the offense on July 6, 2018. In 2014, Campbell obtained crop insurance for two farms from an insurance company that was insured by the Federal Crop Insurance Corporation. The Federal Reinsured Crop Program is administered by the Risk Management Agency, which is an agency of the United States Department of Agriculture, and the Federal Crop Insurance Corporation, which is a wholly-owned government corporation. The Federal Crop Insurance Corporation reimburses insurance companies for the indemnity payments made to policyholders under the Federal Reinsured Crop Program.

Crop shifting occurs when a farmer underreports production in a field in order to reach the percentage of loss required to receive an indemnity from their crop insurance policy. Campbell “shifted” production from one farm to another by reporting that several thousand bushels of grain were harvested from one farm when he knew that those bushels were in fact harvested from the other farm. By reporting the bushels of grain from the incorrect farm, or shifting the production, Campbell received insurance indemnities to which he was not entitled. He also “hid” production by not reporting to the USDA or Federal Crop Insurance Corporation several thousand bushels of corn sold in his son’s name.

By failing to report the bushels of grain sold in his son’s name, authorities say Campbell received insurance indemnities to which he was not entitled. The matter was investigated by the United States Department of Agriculture Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.