Late planted crops may qualify for Prevented Planting-Crop Insurance payments

Crop Insurance Prevented Planting dates are just around the corner and will play into some farms’ crop management decisions for crops not planted by early June.

A large number of farms have purchased combo crop insurance for 2011 crops and may have damage payments available in the next few weeks. If the rains continue and field work including planting is delayed more and more farms with crop insurance plans in place will want to consider options.  Insured producers will want to review the crop insurance policies to confirm options available.

 Corn crops not planted by June 5th are considered as prevented planting.  Producers MUST claim prevented planting on June 5th and notify their crop insurance agent by June 6th to lock in this benefit.   Farms have a “Late Planted” window for the following 25 day during that period of time the income guarantee is reduced 1% per day for the next 25 day. During this “Late Planted” window the farm will need to consider the value or benefits of a late planted crop or wait to plant a second crop.  After the 25 days the farm can plant a second crop after July 1st they could shift to dry beans but at that point in time they are planting dry beans under the late planted status as well which reduces protection on that crop as well.

Soybeans are considered as prevented planting and MUST be claimed on June 15th contacting the Insurance agent by June 16th.  Soybeans have a similar “Late Planted” window for 25 day that reduces the income guarantee by 1% per day for the next 25 day.  Like corn a producer must carefully consider the tradeoffs of planting a late crop or waiting to plant a second crop.  After the 25 days the grower can plant a second crop after July 10st the farm could shift to dry beans or forage crop but at that point in time you are planting Dry beans under the late planted status as well.  In general if you follow the guidelines of your policy the second crop is covered by the indemnity value due on the first crop.  To be sure you will need to check your individual crop insurance policy to make sure that your policy has a prevented planting provision or check with your crop insurance agent to review your options and calculate potential benefits or risk coverage limits you consider on corn planted after June 5th or soybeans planted after June 15th.  Before replanting a second crop, be sure you have the approval from your crop insurance agent to confirm your insurance benefits and thing are done correctly to avoid anything that would void the crop insurance benefits.  

Later planted crops may have a shorter growing season so consideration needs to be given to selection of varieties that are short season types to allow the opportunity for the crop to mature in the shortened growing season.  Fall frost may cause crop damage, quality discounts like low test weight or a complete loss if the late planted crop has not matured.

With continued planting delays, producer will want to calculate and understand their risk management options. Review the reduced total coverage benefit resulting from preventive planting, late planting or second crop options. Also, consider the “actual production history” (APH) yield calculations and other factors when choosing crop insurance/risk management options.

Additional information and completed details of your farms crop insurance coverage is available from your crop insurance agent and some information can be obtained by visiting the USDA Risk Management Agency (RMA) web site at  http://www.rma.usda.gov  and choose “information browser”  to find additional guidelines and crop insurance information for your county.

Source: USDA Risk Management Agency, http://www.rma.usda.gov

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