Late Planting Provisions for Crop Insurance
The frequent and sizable rains seen recently across eastern Nebraska have kept some Nebraska growers from completing their corn plantings. Although 85% of Nebraska's corn acres had been planted as of May 17, according to the National Agricultural Statistics Service report, plantings are lagging in some areas. The crop insurance "final planting date" for corn in Nebraska is approaching, and those with unplanted wet fields may find it difficult to beat this deadline.
The final planting date for crop insurance is the last day to plant an insured crop and still receive the full level of insurance coverage. For corn across the entire state of Nebraska in 2015, this date is Monday, May 25. For soybean, it's June 10. (See RMA final planting dates for all covered crops.)
Acres that haven't been planted by the final planting date can be handled in one of the following ways.
- Plant the insured crop during the late planting period, and insurance coverage will be provided. The late planting period for corn in Nebraska is 20 days after the final planting date. The production guarantee is reduced 1% per day for each day that planting is delayed after the final planting date.
- Plant the insured crop after the late planting period has ended if you have been prevented from planting during the late planting period, and insurance coverage will be provided. The insurance guarantee will be 60% of the original production guarantee.
- Acreage that was prevented from being planted due to an insured cause of loss can be left idle and receive a full prevented planting payment, also equal to 60% of the original production guarantee.
- Plant a cover crop during or after the end of the late planting period and receive a full prevented planting payment as long as it is not hayed or grazed before November 1. The cover crop cannot be harvested for grain or seed at any time.
- Plant another crop (second crop) after the late planting period (if also prevented from planting through the late planting period), and receive a prevented planting payment equal to 35% of the prevented planting guarantee.
For example, consider a grower with a dryland corn APH yield of 150 bushels per acre who has signed up for Revenue Protection coverage with a 75% coverage level. Using the spring projected price of $4.15/bushel, this grower would have a production guarantee of 112.5 bushels per acre and a revenue guarantee per acre of $467 (= 150 bu./acre x 75% x $4.15/bu.). An acre of corn planted five days after the final planting date, for example, would have its production guarantee reduced 5% (1% for each late day), meaning the revenue guarantee would decline 5% from $467 to $444.
Reporting Affected Acres
An insured grower must report separately
- the dates and number of all acres planted on or before the final planting date;
- acreage planted per day (including the date) during the late planting period; and
- the dates and number of acres planted after the late planting period.
Growers need to check with their insurance agents for details on these reporting requirements.
Prevented Planting Payments
For land that could not be planted by the final planting date due to an insured cause of loss during the insurance period, a prevented planting payment may be available for those acres which remain unplanted for the entire late planting period. The size of the prevented planting payment depends on whether a second crop is planted after the late planting period ends. In addition, to qualify for a prevented planting payment, the unplanted acreage must be at least 20 acres or 20% of the crop acreage in the insured unit, whichever is less.
A prevented planting payment is calculated as 60% of the production guarantee for eligible timely planted acres. There is an option to purchase an additional 5-10% more coverage if done so by the sales closing date. No harvest price adjustment is used for replant or prevented planting payments.
A reduced prevented planting payment is made if the acreage in question is planted to a second crop after the late planting period ends. This reduced amount is 35% of the original prevented planting payment. Selecting this option also affects the premium and the APH yield history. The premium is reduced to 35% of the original premium, and the producer must accept a lower yield in their yield history, calculated as 60% of their original APH average for those acres receiving the reduced payment.
If any other crop is planted on the acreage in question during the late planting period, no prevented planting payment will be made.
As always, check your plans with your crop insurance agents to ensure compliance with the coverage and to determine expected payments, reporting requirements, and other details.
Nebraska Extension Educator