CASS COUNTY, NORTH DAKOTA (trfnews.i234.me) — Two North Dakota farmers face federal charges in an alleged crop insurance fraud scheme involving more than $619,000.
Federal prosecutors accuse Daniel Scott Flaten and Derek Scott Flaten of hiding actual crop production. Investigators say the farmers reported losses that their harvest records did not support.
A federal grand jury indicted both men on October 8, 2026.
The indictment includes one conspiracy count against both defendants. Each man also faces two additional counts of making false statements.
Prosecutors Allege $619,130 in Improper Payments
According to prosecutors, the alleged conspiracy operated between January 2021 and January 2023.
Investigators claim the farmers obtained approximately $619,130 in improper crop insurance payments involving three policies.
The government also paid approximately $103,966 in additional subsidies connected to those policies.
Between 2016 and 2025, the farmers received nearly $15 million in various agricultural payments and benefits.
However, prosecutors have not alleged that the entire $15 million was obtained improperly.
How the Alleged Insurance Scheme Worked
Prosecutors say Daniel Flaten reported lower corn and soybean yields than his fields actually produced.
Investigators allege he sold some harvested corn under Derek Flaten’s name.
Grain elevators were allegedly told the corn came from Derek Flaten’s fields.
That arrangement allegedly made Daniel Flaten’s harvest appear smaller than it was.
He then claimed natural conditions, including drought, caused the reported crop losses.
Meanwhile, the additional production allegedly increased yield records associated with Derek Flaten or other family members.
Those records can affect future insurance coverage under federal crop insurance programs.
Harvest Equipment Revealed Different Yields
Federal investigators also examined data collected by precision-farming equipment during harvest.
For 2021 corn in Cass County, Daniel Flaten reportedly certified yields between 67 and 90 bushels per acre.
However, equipment records allegedly showed yields ranging from 116 to 144 bushels per acre.
Similar differences appeared in records from the 2022 harvest.
That year, reported yields ranged from 72 to 115 bushels per acre. Equipment records allegedly showed 120 to 171 bushels per acre.
Prosecutors say insurers accepted the reported figures despite questions from adjusters.
Federal Charges and Possible Forfeiture
Daniel Flaten faces two false-statement charges involving dry beans and soybeans reported damaged in November 2021.
Derek Flaten faces two false-statement charges involving soybean claims submitted in February 2022 and February 2024.
Prosecutors also allege Daniel Flaten incorrectly reported planting dates for his 2022 corn crop.
The government is seeking forfeiture of proceeds allegedly connected to the offenses.
The indictment identifies farming operations in Cass, Grand Forks, Traill, and Steele counties.
The allegations have not been proven in court. Both defendants are presumed innocent unless proven guilty.
Additional Information
More information about the allegations is available through DTN’s reporting on the federal indictment.
Information about production records and crop insurance requirements is available through the USDA Risk Management Agency.
Federal court records may be accessed through PACER. The reported case number is 3:26-cr-00168-PDW.
I’m Adrian Cole reporting for TRF News.
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