USDA's Risk Management Agency has changed prevented planting insurance qualification requirements for farmers in the "Prairie Pothole States" of Iowa, Minnesota, Montana, North Dakota and South Dakota. Risk Management Agency Administrator William Murphy says the change is intended to assist farmers who have experienced difficulties due to excessive moisture in their fields over recent years.
Beginning with the 2012 crop year, a crop must be grown on the acreage at least one of the previous four years if a farmer wishes to qualify. All other policy provisions must also be met.
The requirement to be able to bring an insured crop to harvest in one of four years improves program integrity," said Administrator Murphy. "It also helps to meet the needs of farmers in the Prairie Pothole region, where some acreage has not been available to plant since the 2008 crop year due to flooding and excessive moisture conditions."
USDA's Risk Management Agency, which manages the Federal crop insurance program, is instituting the change in response to listening sessions with producers in the affected states of Iowa, Minnesota, Montana, North Dakota and South Dakota. Actuarial documents filed for individual counties beginning with the 2012 crop year will include spring-seeded crops in counties with fall (winter and spring wheat coverage) sales closing dates.
Prevented planting coverage due to floods, hurricanes, or excess rain during the insurance period that prevents other producers from planting acreage with similar characteristics, is provided for most crops. Because conditions vary significantly between geographic areas, loss determinations are based on each producer's circumstances. Producers must contact their crop insurance company to report a prevented planting loss.
The prevented planting guarantee for the crop ranges from 60% to 70% of the production guarantee for acreage timely planted by the final planting date. Options available to producers are outlined on the RMA website.