Late Planting Provisions for Multiple Peril Crop Insurance - UNL CropWatch, May 16, 2013

Late Planting Provisions for Multiple Peril Crop Insurance - UNL CropWatch, May 16, 2013

May 16, 2013

Cool temperatures and moisture issues have forced many Nebraska producers to start their spring planting later than usual this year. For the week ending May 12, the National Agricultural Statistics Service reported 43% of corn acres had been planted in Nebraska, compared to last year’s 89% and a five-year average of 77%. If planting delays continue, producers should consider how to handle acres that haven’t been planted prior to the “final planting date” in their crop insurance policies.

Nebraska corn final planting date

Figure 1. Final planting date for corn is May 25, 2013 for the majority of the state. (All maps link to larger versions.)

FInal planting date for soybeans

Figure 2. Final planting date for soybean is June 10, 2013 for the majority of the state.

Final planting date for sorghum

Figure 3. Final planting date for sorghum in north central and northwest Nebraska, where provided, is June 5, 2013 and in southern and eastern Nebraska it's June 15, 2013

The final planting date is the last day to plant an insured crop and still receive the full level of insurance coverage. Final planting dates in Nebraska are May 25 for corn and June 10 for soybeans. For grain sorghum, the final planting date is June 5 for north central and northwest Nebraska and June 15 for eastern and southern Nebraska.

Options for Delayed Planting

Acres which haven’t been planted by the final planting date can be handled in one of the following ways.

  1. 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 late planting period for soybeans and grain sorghum in Nebraska is 25 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.
     
  2. 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.
     
  3. Leave the acreage idle and receive a full prevented planting payment, also equal to 60% of the original production guarantee.
     
  4. Plant a cover crop 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.
     
  5. 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.

RMA recently posted
answers to frequently asked questions specifically for irrigated Nebraska producers who may be facing limited water allocations this year.

Let’s illustrate these options for an example farm. Consider a producer with a dryland corn APH yield of 140 bushels per acre who has signed up for Revenue Protection coverage with a 75% guarantee level. Using the projected price at sign-up of $5.65/bushel, this grower would have a production guarantee of 105 bushels per acre and a revenue guarantee per acre of $593 (= 140 bu/ac x 75% x $5.65/bu). An acre of corn planted 10 days after the final planting date, for example, would have its production guarantee reduced 10% (1% for each late day), down to 95 bushels per acre or $534 revenue protection per acre.

An insured producer must report separately

  • all acres planted on or before the final planting date;
  • acreage planted per day (including the date) during the late planting period; and
  • acreage planted after the late planting period.

Producers need to check with their insurance agents on details for these reporting requirements.

How Payments are Calculated

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% coverage if done by the sales closing date. No harvest price adjustment is used for replant or prevented planting payments.

To illustrate, recall our example producer with RP coverage, a 140 bushel APH yield, and a 75% guarantee level, resulting in a production guarantee of 105 bushels per acre. The full prevented planting payment would be 60% of this, or 63 bushels ($356 revenue) per acre. Those acres receiving the full prevented planted payment would be considered “not planted” when calculating the current year’s yield for their APH yield history (that is, they are not included when determining the unit’s yield for that year).

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.

Monte Vandeveer
UNL Extension Educator, Otoe County