In 2011, prevented planting payments were a significant portion of the indemnities paid in New York for corn. Of the approximate $17 million paid for corn indemnities, almost $11 million were for prevented plantings.
How it works
When excessive rain prevents field work, a farmer with any level of crop insurance except catastrophic coverage can use that final date to terminate corn and soybean planting. Be sure to notify the crop insurance agent in writing within 72 hours of the final planting date for the affected crop.
And, if you participate in Farm Service Agency (FSA) programs, you must report your prevented planting acreage within 15 calendar days after the final planting date to receive the prevented planting acreage credit.
Your cause for the delay of planting must be across the area where your farm is located and documented by a reputable weather service. Make that decision well before that final date, and contact your insurance agent to be sure there are no misunderstandings.
You'll receive 60% of the guarantee for those eligible acres not planted. Here's how it's figured:
Assume your farm's 120-bushel-per-acre corn yield and you chose a 65% coverage option. The 65% or 78 bushels times the projected $5.68 per bushel equals a $443.04 insured guarantee.
If you claim prevented planting, multiply 60% times the $443.04 for your preventing planting payment of $265.83 per acre.
Acres claimed for prevented planting payment can't be planted to a crop for harvest during the current crop year. You can, however, plant a cover crop or a fall-planted crop to be harvested next year.
Benson is a Cornell University Extension small dairy support person.