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June 3, 2004 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, 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 $3.35, for a maximum coverage of $65.33 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 $39.20. Producers had the option to buy higher prevented planting coverage, 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 collect prevented planting coverage on is the maximum number of acres certified for APH purposes or reported for insurance for the crop in any one of the four most recent crop years minus the acres planted of that crop. “For example, if the most acres planted to soybeans in any of the previous four years were 500, the maximum prevented planting claim on soybeans would be 500 acres less any soybeans actually planted,” Aakre says. “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. A cover crop may not be hayed, grazed or chopped for silage or green chop. Second crop. Any crop planted for harvest as grain, seed, hay, grazing , silage or green chop is considered a second crop regardless of whether or not it is insured. If the second crop is an insured crop, the producer is eligible for 100 percent of any indemnity that may be due for the second crop and 35 percent of the prevented planting payment for the acreage of the first insured crop, provided the second crop is not planted on or before the final planting date or during the late planting period for the first insured crop. If the second crop in not an insured crop, the reduction in prevented planting payment to 35 percent still applies. Premium on prevented
planted acres. The insured is responsible for paying the full premium
if no second crop is planted. If a second crop is planted, the premium
is reduced to 35 percent for the first crop. The full premium is due on
the second crop. Late planting. If an insured crop is planted after the final planting date for that crop has passed, the coverage guarantee is reduced. The production guarantee is reduced 1 percent per day for each day planted after the final planting date. Acreage planted after the late planting period will have a reduced coverage level equal to the prevented planting percent. 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, dwight.aakre@ndsu.nodak.edu |
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North Dakota State University |
