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Acreage Report Deadline - June 30, 2011

 

Preventive Planting Information

 

 

According to the USDA Risk Management Agency (RMA), producers have the following options with regards to delayed or prevented planting later than the established Final Planting Dates (Remember, these provisions are not applicable until after the Final Planting Dates):

·         Plant the insured crop during the late planting period, which is typically 25 days following the established Final Planting Date for a given crop. (Example --- A Final Planting Date of May 31 for corn would result in a late planting period from June 1-25.) The crop insurance coverage is reduced by 1 percent for each day after the Final Planting Date for the next 25 days.

·         Plant the intended crop after the 25-day Late Planting Period. Crops that are planted after the 25-day Late Planting Period are insured at the same level as the prevented planting insurance coverage, which is 60 percent of the original crop insurance guarantee for most corn and soybeans. (Example --- an original revenue guarantee with an 80 % RP crop insurance policy of $800.00 per acre would result in a $480.00 prevented planting guarantee.)

·         Leave the unplanted crop acreage idle (black dirt). Eligible producers can then receive the full prevented planting coverage, typically 60 percent of the original crop insurance guarantee for corn and soybeans.

·         Plant a cover crop rather than the intended crop, and receive the full prevented planting payment (60 % of guarantee on the intended crop). The cover crop can not be used for haying and grazing until after November 1 of the crop year, and can not be harvested at any time.

·         Plant another crop (second crop) after the late planting period has ended. In this situation, haying, grazing, or harvesting of the second crop could occur at any time before or after November 1. The prevented planting payment is reduced to 35 percent of the original prevented planted payment. (Example --- $800.00/A. original guarantee x .60 = $480.00/A. x .35 = $168.00/A.)

Acreage not considered available for planting includes, but is not limited to, the following:

·         Acreage enrolled in CRP

·         Perennial crop acreage

·         Pasture or forage acreage is in place

·         Acreage that in normal weather patterns is normally wet throughout the final and late planting period, and that would only be available to plant in abnormally dry conditions.

 

The Final Planting Date for corn in Minnesota is May 31, meaning that the Late Planting Period is June 1-25. For soybeans, the Final Planting Date is June 10 in Minnesota with the Final Planting Date extending for 25 days until July 5.  The Final Planting Date for Barley, Wheat, and Oats in Minnesota is May 15.  The final planting date for dry bean is June 10.  It is important to pay close attention to the Final Planting Dates and the Late Planting Period when making late planting or prevented planting crop insurance decisions.

 

 

 

To qualify for Prevented Planting insurance coverage and payments, affected areas must be a minimum of 20 acres in size, or 20 percent of the total insured acreage, on farm units of less than 100 acres. Very small areas of land do not qualify for prevented planting coverage, which could be a factor on some smaller land tracts with optional unit insurance coverage. Meeting the 20 percent threshold may be easier with enterprise units, if most crop acres are affected; however, it could become more difficult if some farms are affected, and some are not.

It is very important for producers to document all prevented planted acres and crop losses with their Crop Insurance Agent before switching crops, or doing any other practices on the affected acres. Producers also need to keep good records and documentation of crop losses and prevented planting for future calculations of crop insurance indemnity payments.

If planting a second crop that crop must be listed on the policy for there to be coverage.

 

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