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Prevented Planting Insurance Kicks In

Prevented Planting Insurance Kicks In

NDSU's Dwight Aakre offers a primer on how the program works, and explains some of the details.

The prevented planting insurance program sounds pretty straight forward. Whatever you can't plant qualifies, right? Well maybe not.

Dwight Aakre, NDSU Extension farm management economist, explains some of the programs details:

Maximum acres.

The maximum number of acres of prevented-planting by crop for each producer is the highest acreage of each crop planted in the previous four years, minus the number of acres of that crop that the producer is able to get planted.

In most cases, if part of a field is planted, the remainder of that field will be considered prevented-planted to the same crop unless there is a history of dividing the field and maintaining a rotation.

When the maximum number of acres of planted and prevented-planting of a crop is reached, any additional acres in that field can be designated prevented-planted to another crop if the maximum number of acres of that crop has not been planted.

The payment rate will be limited to the amount payable for the crop that was partially planted in that field if there are insufficient eligible acres of that crop but there are remaining eligible acres for a crop with a higher payment amount. If the remaining eligible acres are a crop with a lower payment rate, the lower payment rate applies."

20 acre, 20% rule

Prevented-planting coverage will not be provided for any acreage that does not constitute at least 20 acres or 20% of the insurable crop acreage in the insurance unit. If the producer has designated enterprise units, all the acres of that enterprise are added together. This makes it more likely to meet the minimum requirement.

72 hour notification

Once the final planting date for a crop has passed, but the acreage is still too wet to plant and the producer decides to elect prevented-planting, he or she is required to notify his or her insurance agent within 72 hours of the decision to stop planting that crop. The insurance company will then make a determination on the eligibility of that acreage for prevented-planting.

Source: NDSU Extension Communications

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