Crop Insurance Rules for a Wet, Cold Spring

Finance First

Know how your crop insurance policy works as you make planting decisions

Published on: April 29, 2013

This spring has already created some challenges for farmers in many areas who are dealing with planting delays due to cold and wet weather. It's important that you understand how your multi-peril crop insurance deals with prevented planting and replanting issues. That will help you make the best decisions during this planting season – and avoid any confusion or pitfalls that could cost you your coverage.

Here are a few points of special importance about your crop insurance policy and the rules for planting periods, replanting, and prevented planting.

-Know your final plant date – it's different for different areas of the country. The late planting period begins the day after the final plant date. It's important to note that if you have to plant during the late planting period, your coverage gets reduced by one percent per day for 25 days.

-If weather conditions cause you to have to replant, there are a few rules to follow. You are only allowed to replant the same type of crop as you originally had planted. For example, if you had originally planted corn in that field, you must replant corn, as well. You cannot plant soybeans, for example. If you do decide to plant a different crop than the original crop, you must notify your agent first to discuss how your policy and coverage will be affected.

-When you are determining whether you need to replant, be aware that your appraised yield must be 90% or less than your policy's guaranteed bushels in order to qualify for replanting.

-There are no prevented planting, late planting, or replanting policies available for a GRP or GRIP policy.

-Prevent plant guarantees are 60% of your original guarantee, unless you purchased the additional prevent plant guarantee by March 15 this year.

-The size of the area that you are thinking about replanting or submitting for a prevent plant guarantee must be equal to or greater than 20 acres, or 20% of the unit.

-You'll want to contact your crop insurance agent or advisor with any questions if you're having trouble with getting the crop in the ground. They should be able to give you information about your concerns and help you use your crop insurance policy as part of your risk management plan for your farm.