So, you are thinking more about prevented planting, are you now?
- Work through the math to get a close idea of what your payment will be for prevented planting, as well as reductions for your coverage of a late planted corn crop if you plant after the final planting date.
- Think back to when you signed up for crop insurance to remember if you paid extra for a higher level of coverage for prevented planting. You might be paying a higher premium for 75 percent coverage, instead of just 60 percent.
- If you are concerned about the 60 percent not covering your input costs, calculate your updated input costs, which will mean reduced machinery, fuel, and drying costs, and whatever herbicide, fertilizer and seed you don’t use. While gross revenue will be reduced, so will gross expense outlays.
- If you have planted just part of an insurable unit, prevented planting will only affect the unplanted portion, as long as it is more than 20 percent of the unit and not less than 20 acres.
- If you have planted just part of an insurable unit, which is covered by an enterprise policy, the minimum acreage provisions must be in two separate sections. Without that, the enterprise policy is not in effect and the policy will revert to optional or basic units.
- Your APH will not be impacted unless a second crop is planted on the acreage that was claimed as prevented planting
Many Corn Belt farmers have either hit or soon will hit the final planting date for corn and will make a decision on prevented planting. It is an option for management of the 2013 crop and operational revenue. However, there are many implications, and consultation with a crop insurance agent should be a priority.