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Prevented Planting and Added Land

    Home Crop Insurance Prevented Planting and Added Land

    Prevented Planting and Added Land

    By Justin Frye | Crop Insurance | 0 comment | 27 November, 2019 | 0

    Image result for prevented planting pictures

    Being from the Prairie Pothole region, we know what prevented planting is and how often it occurs. Prevented planting will be a major concern for farmers in 2020. The wet fall will carry over into next spring. Any snow we accumulate will add moisture to the already saturated ground. All PP determinations are made on a case-by-case basis, so knowing your PP qualifications, provisions, and options is important for determining your eligibility and potential payments. Because this fall has been so wet, added land qualifying for prevented planting will be brought into question in the spring.

    A big concern for AIP’s in 2020 will be the date the lease or purchase agreement has been signed. Barring other qualifications, if there is an existing cause of loss at the time of purchase (determined by the AIP), to be eligible to receive prevented planting acreage, another cause of loss must occur after sales closing date. This is a very important note for those of you adding land to your operation. For example, if you are picking up land and you signed a purchase agreement on October 15th, 2019 and the ground was under water, there is an existing cause of loss as determined by the AIP. Now that there is an existing cause of loss, the added acreage will not be eligible unless an additional cause of loss occurs after the March 15th, 2020 sales closing date. The unfortunate reality is that a lot of areas have a pretty good chance of having an existing cause of loss if the land was picked up this fall.

    Below are some helpful reminders and options you have for prevented planting when spring rolls around. These are for informational purposes only and are subject to change. All final determinations are made by the AIP and RMA.

    Prevented Planting Reminders:

    • Damage must occur due to an insured cause of loss, general to the surrounding area.
    • The PP acreage must constitute 20 acres or 20% of the unit.
    • The PP acreage must be reported on the acreage report.
    • 1-in-4 Rule: In one of the last 4 years, the acreage must have been planted, insured, and harvested.
      • The eligible number of acres will be the maximum number of acres reported in the last 4 years.
    • New Insured Eligibility
      • Loss must occur on or after the sales closing date.
    • Carryover Insured Eligibility
      • Loss must occur on or after the sales closing date; or
      • Provided insurance has been in force continuously, on or after the sales closing date for the previous crop year.
    • Claims must be filed within 72 hours after the final planting date or end of the late plant period.

    Prevented Planting Options:

    • Plant during the late plant period.
      • Generally your production guarantee will reduced by 1%/day.
      • No PP payment will be received.
    • Plant after the late plant period.
      • You will have the option not to insure; or
      • Insure acreage at the prevented planting coverage level.
      • No PP payment will be received.
    • Leave the acreage idle.
      • Full PP payment will be received.
    • Plant a second crop after the late planting period.
      • A 35% payment will be received.
    • Plant an eligible cover crop during the late plant period.
      • A Full PP payment will be received if you do not hay, graze, cut for silage, or otherwise harvest prior to September 1st.
        • If before September 1st, no PP payment will be received.
    • Plant an eligible cover crop after the late plant period.
      • A 35% payment will be received if you hay, graze, or cut for silage prior to September 1st.
        • If after September 1st, a full PP payment will be received.

    See what else we are talking about.

    More on Prevented Planting.

     

    DISCLAIMER

    Added Land, Crop Insurance, PP, Prevented Planting

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