Delta Crop Insurance Guidance

Prevent Planting

Wet springs, flooding, poor stands and weather-related planting delays are familiar risks for farmers in Eastern Arkansas and Western Mississippi. Federal crop insurance may provide prevented planting or replant protection when an insured cause of loss keeps a producer from planting on time or damages a crop badly enough that it must be planted again. Although the two coverages are related, they address different situations: Prevented planting applies when an insured cause keeps the crop from being planted by the applicable final planting date. Replant coverage may apply after the crop was planted but an insured cause damages the stand and replanting the same crop is practical and required. Both coverages have detailed eligibility, acreage, timing and reporting requirements. A producer should contact Delta Crop Insurance before making decisions involving late planting, replanting, destroying a crop, planting another crop or putting affected acreage to another use. Prevented Planting Coverage What Is Prevented Planting? Prevented planting coverage may provide a payment when a producer is unable to plant an insured crop by the final planting date—or within the applicable late planting period—because of an insured cause that is general to the surrounding area. “General to the area” does not mean every farmer in the county must be prevented from planting. It generally means that other producers with acreage having similar geographic, topographic, drainage and soil characteristics were affected by the same cause. In the Delta, prevented planting situations frequently involve excessive rainfall or flooding that keeps producers from preparing seedbeds, applying necessary inputs or operating planting equipment. A wet field by itself does not automatically qualify. The approved insurance provider must determine that the policy requirements have been satisfied. Common Causes of Prevented Planting Depending on the policy and circumstances, insured causes may include: Excessive rainfall or moisture Flooding Drought Failure of irrigation water supply caused by an insured event Inability to prepare land for irrigation because of an insured cause Other weather-related conditions covered under the policy Prevented planting generally does not cover an inability to plant because of: Lack of labor Lack of seed or other inputs Equipment shortages or breakdowns unrelated to an insured cause Financial problems Low commodity prices A management decision not to plant Waiting on another farm when the acreage could otherwise have been planted A production method or equipment limitation unique to the producer Failure to follow generally recognized farming practices A condition that was not general to producers with similar acreage The cause must occur during the prevented planting insurance period and continue to prevent planting through the applicable date. The Final Planting Date Each crop and county has a final planting date established in the RMA actuarial documents or Special Provisions. Planting by the final planting date generally provides the full production or revenue guarantee. If the crop is planted after the final planting date, the late-planting provisions may apply. Final planting dates vary by: Crop County Crop year Type Practice Planting period Producers should never assume that the date is the same as last year or the same in an adjoining county. What Is the Late Planting Period? Many crops have a late planting period following the final planting date. Under the general late-planting provisions, the guarantee is reduced by 1% for each day the crop is planted after the final planting date during the late planting period, unless the Crop Provisions provide otherwise. For example, if acreage is planted five days after the final planting date, its production or revenue guarantee may be reduced by 5%. The producer may have several possible choices: Plant the original crop during the late planting period with a reduced guarantee Continue trying to plant until the late planting period expires Claim prevented planting if all requirements are satisfied Plant after the late planting period under the coverage provided by the policy Plant another crop, understanding that doing so can affect the prevented planting payment Plant an approved cover crop and follow the applicable cover-crop rules These decisions should be discussed with the crop-insurance agent before the producer acts. Acreage Eligibility Prevented planting coverage is not automatically available on every acre a producer intended to farm. The number of eligible acres is generally connected to the producer’s planting history, acreage reports, APH records, intended acreage reports and the total cropland in the farming operation. Current rules generally require the land to have been planted and harvested—or adjusted for an insured cause of loss—in at least one of the four previous crop years. Recent RMA changes removed the former requirement that the acreage also had to be insured during the qualifying year. The maximum eligible acreage is generally based on the highest number of qualifying planted or insured acres for the crop during the applicable historical period, subject to additional policy rules. Special procedures can apply to: Newly acquired land Added land New producers New farming operations Crops requiring processor contracts Irrigated acreage Double-cropped acreage Acreage with different crop types or practices Acreage without an established planting history A producer should not assume that renting additional land automatically creates prevented planting eligibility for the intended crop. The 20-Acre or 20% Requirement Prevented planting acreage generally must equal at least: 20 acres or 20% of the insurable crop acreage in the unit, whichever is less. Assume a unit contains 200 insurable acres: Twenty percent of 200 acres is 40 acres. Twenty acres is less than 40 acres. The prevented planting acreage would generally need to equal at least 20 acres. If the unit contains 50 insurable acres: Twenty percent of 50 acres is 10 acres. Ten acres is less than 20 acres. The acreage would generally need to equal at least 10 acres. Additional rules apply when prevented planting acreage is located within a field containing planted acreage or when different crops, types or practices are involved. Prevented Planting Coverage Factors A prevented planting payment is generally calculated as a percentage of the guarantee that would have applied if the crop had been timely planted. This percentage is called the prevented planting coverage factor. The factor varies by crop and is established in the Crop Provisions or actuarial documents. It is intended to recognize that some production expenses have not yet been incurred when a crop cannot be planted. Current RMA rules reinstated the optional buy-up prevented planting coverage for applicable 2027 and succeeding crop policies. The effective year depends on the crop’s contract change date. Producers should verify the factor and available elections for the specific crop year rather than relying on an election made in an earlier year. How a Prevented Planting Payment Is Calculated A simplified calculation begins with the timely planted guarantee. For a yield-based plan: Approved yield × Coverage level × Projected price = Timely planted guarantee per acre The prevented planting factor is then applied: Timely planted guarantee × Prevented planting factor = Prevented planting payment per acre The total payment is generally calculated as: Payment per acre × Eligible prevented planting acres × Producer’s share = Potential payment Revenue-based policies and certain crops may use a different amount-of-insurance calculation. The policy, Crop Provisions and actuarial documents control the final payment. Prevented Planting Example Assume a soybean producer has: Approved APH yield: 60 bushels per acre Coverage level: 75% Projected price: $12.00 per bushel Applicable prevented planting factor: 60% Eligible prevented planting acreage: 100 acres Producer’s share: 100% This simplified example assumes the acreage satisfies all planting-history, cause-of-loss, minimum-acreage and reporting requirements. Step 1: Calculate the production guarantee 60-bushel approved yield × 75% coverage = 45 bushels per acre Step 2: Calculate the timely planted value 45-bushel guarantee × $12.00 projected price = $540 per acre Step 3: Apply the prevented planting factor $540 × 60% prevented planting factor = $324 per acre Step 4: Apply eligible acres and ownership share $324 × 100 acres × 100% share = $32,400 The simplified potential prevented planting payment would be: $324 per acre, or $32,400 for 100 eligible acres This is not reimbursement for the producer’s actual expenses. The payment is calculated using the policy guarantee and applicable prevented planting factor. Premium, offsets, acreage limitations, unit structure, second-crop rules and other policy provisions may affect the final amount. Planting a Second Crop Planting another crop on prevented planting acreage can substantially change the payment. Unless the producer qualifies for the policy’s double-cropping exception, planting a second crop for harvest may generally reduce the prevented planting payment on the first crop to 35%. The premium for the first crop is also generally reduced to 35%. Using the previous $32,400 example: $32,400 × 35% = $11,340 The producer could potentially receive $11,340 on the prevented soybean crop while insuring the eligible second crop, subject to all policy requirements. A producer may qualify for a full prevented planting payment when the second crop is planted if the double-cropping requirements are met. Those requirements generally include showing that double cropping is an accepted practice in the area and providing qualifying acreage and production records from at least two of the four applicable crop years. Planting another crop—even when planted by a tenant or another producer—can affect the prevented planting payment. Always discuss the plan before planting. Cover Crops on Prevented Planting Acreage A cover crop may be planted on prevented planting acreage, but its use can affect eligibility and payment. The timing of planting, grazing, haying, cutting for silage or harvesting for grain or seed may be important. A cover crop harvested for grain or seed can be treated as a second crop and may reduce the prevented planting payment. Producers should review current RMA cover-crop rules before planting or using a cover crop on prevented planting acreage. When Must Prevented Planting Be Reported? Under the general notice requirements, the producer must notify the crop-insurance provider within 72 hours after: The final planting date, if the producer does not intend to plant during the late planting period; or The producer determines that the crop cannot be planted during the applicable late planting period. A telephone notice may begin the process, but the producer must also complete required forms and report prevented planting acreage on the acreage report. Do not wait until the acreage-reporting deadline to begin the conversation. Documentation That May Be Needed

Useful documentation may include: Planting records from previous years FSA acreage reports and maps APH records Seed, fertilizer and chemical purchase records Field-preparation records Equipment and labor availability Rainfall records Photographs or videos River, drainage or flood information Records from neighboring farms Lease agreements Intended acreage reports Written records showing the intent to plant the crop Records showing when planting began and stopped Documentation should show both that the producer intended to plant the crop and that an insured cause prevented planting.