My goal is to give some insight and clarity to the delayed and prevented planting provisions of crop insurance. The most important first step is to contact your crop insurance agent before you make any decisions on the planting, replanting or abandoning of acres. There are many rules and regulations that need to be followed so it is important that you stay in close contact with your crop insurance agent. Each crop and insurance product has its own special rules and regulations that need to be followed. 

Below are links to three guides that will help you in understanding the delayed and prevented planting provisions. At the end of the publication from Iowa State, there is a flow chart that I found very helpful. 

You must remember the final planting dates and the late planting periods are different for each state and for each crop.  Missouri’s provisions will be different from Illinois, Kentucky and Arkansas.   

Planting dates for Southeast Missouri

Corn replant payment equals 8 bushels X $6.01.

Soybean replant payment equals three bushels X $13.49.

Rice replant payment equals 400 lb. X $0.161.

Important points

If a second crop is planted before the end of late planting period for the prevented planted crop, no prevented planted payment will be paid.

The revenue guarantee will be reduced 1 percent per day on all crops planted within the late planting period. The original planting date and acreage on replants should be reported to your insurance agent as soon as possible.

If the first crop fails and you are not planting back to the same crop, make sure you call your crop insurance agent. First crop losses must be reported and a claim submitted before you can plant a second crop. 

Examples/first situation

I want to go through some situations and options a farmer may have. In each situation I will use corn as my original crop and final date to plant corn May 10. I will also use Revenue Protection (RP) in my examples and a Revenue Guarantee of $676 per acre (150 bushel APH X $6.01 corn price X 75 percent coverage level). Also in the situations where the crop was planted and damaged due to the flooding, the crop insurance company projected a 100 percent loss. 

The first situation is when the corn crop cannot be planted on time – Prevented Planting.

There is a 20-day late planting period that begins after the final planting date. As I mentioned earlier, for most of southeast Missouri the final planting date is May 10.  Any acres initially planted during the late planting period (May 11 through May 30) will receive a lower revenue guarantee than those acres planted earlier. The coverage is reduced 1 percent per day for each of the next 20 days. 

If corn is initially planted on May 20, the revenue guarantee will be reduced 10 percent to $608 (10 days X 1 percent per day X $676 per acre).

The Revenue Guarantee is reduced to 60 percent or $406 ($676 per acre X 60 percent). The producer has the option to insure the corn crop if initially planted after the end of the late planting period.

If nothing is planted, an indemnity payment will be made of 60 percent of the Revenue Guarantee of $406 ($676 per acre X 60 percent). 

The soybeans must be insured and an indemnity payment will be made equal to 35 percent of the prevented planting payment of the corn of $142 ($676 per acre X 60 percent X 35 percent). Also, a yield equal to 60 percent of the approved yield for the prevented planting corn acreage would be entered into the 2011 APH. 

Second situation

The second situation is when the corn crop was planted before the final planting date, but is severely damaged by the flooding.

The Revenue Guarantee will be $676 per acre (150 bushel APH X $6.01 corn price X 75 percent coverage level). If the yield is severely damaged, an indemnity payment will be made if the fall harvest revenue is below $676 per acre.

If the corn crop is projected to produce less than 90 percent of the guarantee yield, the producer can receive a payment equal to the projected price of $6.01 X 8 bushels or $48.08. In this example with a 150 APH and 75 percent coverage level, the corn yield would need to be less than 101 bushels per acre (150 bushels X 75 percent X 90 percent).

In this situation the crop insurance company projects a 100 percent loss and allows the corn crop to be destroyed. A 100 percent indemnity payment will be made based on the estimated yield loss on the corn. If corn is estimated as a 100 percent loss, indemnity payment is $676 per acre (150 bushel APH X $6.01 corn price X 75 percent coverage level). 

In this situation the crop insurance company projects a 100 percent loss and allows the corn crop to be destroyed. If the soybean crop is insured, the producer will first receive 35 percent of loss payment of the corn, $237 (150 bushel APH X $6.01 corn price X 75 percent coverage level X 35 percent). If the soybeans do not have a loss, the other 65 percent will be paid at harvest, $439 acre (150 bushel APH X $6.01 corn price X 75 percent coverage level X 65 percent). If the soybeans do have a revenue loss, the producer can choose to take the second 65 percent corn payment, $439, or the soybean loss, whichever is greater.

In this situation the crop insurance company projects a 100 percent loss and allows the corn crop to be destroyed. A 100 percent indemnity payment will be made of $676 per acre (150 bushel APH X $6.01 corn price X 75 percent coverage level). 

For more, see Reinbott/UM Extension site.