Prevented Planting Decisions for Corn
Most of Arkansas’ corn acres are still unplanted. As of April 18th, the National Agricultural Statistical Service estimated planting progress at 43% complete. The 5-year average planting pace is 61%. Rainfall in some areas has slowed planting. Furthermore, drying conditions have been hampered by below normal temperatures.
With respect to crop insurance, the April 25th Final Planting Date for corn is fast approaching. This date applies mainly to southern and central Arkansas counties. The Final Planting Date is the last day a producer can plant the insured crop and receive full coverage from their crop insurance policy. For Arkansas, the Late Planting Period for corn is 15 days after the Final Planting Date. The table below provides important dates for Arkansas corn producers when examining prevented planting decisions.
Common Prevented Planting Options:
If a producer is unable to plant corn by the Final Planting Date there are a number of alternatives to consider.
1. The intended crop can be planted during the Late Planting Period. For Arkansas, the Late Planting Period for corn extends 15 days after the Final Planting Date. However, planting during this timeframe results in a reduction of insurance coverage. In this case, coverage is reduced 1% per day each day after the Final Planting Date until the crop is planted or the end of the Late Planting Period.
2. Take the full prevented planting payment. The full prevented planting payment is the producer’s production guarantee multiplied by the prevented planting coverage factor. The prevented planting coverage factor for corn is 55%; therefore, the full corn prevented planting payment would be 55% of the production guarantee.
For example, if your Actual Production History is 180 bu./acre and you elected 75% coverage and chose Revenue Protection, your guarantee would be:180 bu. X 75% = 135 X $4.48 projected price = $604.80 per acre. Your prevented planting indemnity would be $604.80 X 55% = $332.64 per acre.
This option requires leaving the land fallow or planting a cover crop after the Late Planting Period. Generally, the cover crop cannot be harvested or grazed before November 1st.
3. Switch to an alternative crop and receive 35% of the full prevented planting payment for corn. If a partial indemnity payment was received for the first (intended) crop, planting of an alternate crop must wait until after the Late Planting Period of the first crop.
4. Forgo the prevented planting payment for corn and plant an alternate crop. In this case, the producer did not receive an indemnity payment for the first (intended) crop. Instead, they can switch their insurance to a second crop and plant immediately.
- Prevented planting must result from an insured cause (i.e excessive rain).
- The preventing factor must be common to the area.
- In order to be eligible for a prevented planting payment, the area that was prevented from being planted must be at least the lesser of 20 acres or 20% of the insurable crop acres in the unit. The acreage that was prevented from being planted does not need to be contiguous.
- A prevented planting claim cannot be made until after the Final Planting Date for the crop.
- An alternative crop cannot be planted during the Late Planting Period which is 15 days after the Final Planting Date for corn. This would negate any prevented planting claim.
- Submit a notice of loss on a prevented planting claim no later than 72 hours after the end of the Late Planting Period.
If you have questions about prevented planting protection under your crop insurance policy, contact your crop insurance agent about filing a claim or changing your planting intentions.