May 24, 2001

Farm Management Specialist Highlights Prevented Planting Crop Insurance Coverage

Parts of North Dakota and Minnesota have not dried enough to allow spring field work to progress. As a result, some producers may be looking at their prevented planting crop insurance coverage, according to a North Dakota State University farm management specialist.

"It is important to note that all crop insurance coverage must have been purchased by March 15," says Dwight Aakre of the NDSU Extension Service..

Aakre says the following information outlines general coverage and limitations for prevented planting covered under crop insurance.

• Coverage. Generally prevented planting coverage pays the producer 60 percent of the coverage guarantee. As an example, a producer with a 30-bushel actual production history (APH) of hard red spring wheat who purchased coverage at the 65 percent level would have a minimum guarantee of 19.5 bushels at a price of $2.80, for a maximum coverage of $54.60 per acre if the crop is planted before the final planting date. If prevented from planting, the indemnity is 60 percent of the guarantee or $32.76.
  
  Producers had the option to buy up a higher prevented planting coverage level, either 65 or 70 percent, but that coverage had to be purchased by the final sales closing date of March 15, Aakre notes.
  
  
• What crop or crops didn’t get planted? The maximum acres of any crop that a policy holder can elect to collect prevented planting coverage on is the highest acreage that was produced of that crop in the past four years minus the acres planted of that crop.
  
  For example, if the most acres planted to soybeans in any of the previous four years was 500 , the maximum prevented planting claim on soybeans would be 500 acres less any soybeans actually planted. If 1000 acres were not planted and no soybeans were planted, the producer could file a prevented planting claim for 500 acres of soybeans and the other 500 acres would be assumed to not be planted to the crop with the next highest minimum guarantee.
  
  
• Cover crops. Producers have the option on prevented planted acreage to plant a cover crop that will not be harvested for grain or seed. However this cover crop may be hayed, grazed or chopped for silage or green chop.
  
  
• Fallowed acres. If fallow acres have been a common practice, that acreage will be deducted from the number of acres of prevented planting claims.
  
  
• Late planting. If an insured crop is planted after the final planting date for that crop has passed, the coverage guarantee is reduced. For canola, mustard and crambe, the reduction is 2 percent per day for the first five days and 3 percent per day for the next 10 days. For other crops the reduction is 1 percent per day for 25 days.
  
  
• Coverage minimums. Prevented planting coverage will not be provided for any acreage that does not constitute at least 20 acres or 20 percent of the insurable crop acreage in the unit, whichever is less.

###

Source: Dwight Aakre, (701) 231-7378, daakre@ndsuext.nodak.edu 
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu