By Jake Jacobs, University of Vermont Risk Management Education
Crop insurance can help your farm recover from a crop failure. Did you know it can also help you manage risk at planting time? Most crop insurance policies include provisions that can compensate you if you are unable to plant or help you afford to replant your crop if necessary.
Cannot Plant the Acres
Am I covered?
Most policies include a provision for prevented planting with the exception of group risk (GRP, GRIP, and ARPI) and catastrophic-level (“CAT”) policies.
You may be eligible to file a claim if:
- Your acreage is physically available for planting
- Your acreage was planted in at least 1 of the 4 most recent crop years
- An insured cause of loss occurred within the insurance period, for example:
- Excessively wet conditions throughout the growing season which prevented nearby producers from planting similar acreage
- A specific event, like flooding, which impacted only your field
- You were unable to plant by the final planting date or during the late planting period (generally 25 days after the final planting date but varies)
So you were unable to plant, now what?
You must provide notice that you were prevented from planting an insured crop within 72 hours after you determine you will be unable to plant. Then you may choose to:
- Leave the acreage idle or plant a cover crop (and receive a full prevented planting payment as long as you do not hay or graze the cover crop before November 1),
- Plant the crop late (your original production guarantee applies but is reduced one percent per day for each day planting is delayed after the final planting date), OR
- Plant a second crop (you may receive a prevented planting payment equal to 35% of the prevented planting guarantee).
The prevented planting guarantee for most crops is 60%* of the production guarantee for timely planted acreage (the production guarantee is 65 or 70% of projected price).
* Some policies have additional coverage options available.
Replant provisions in insurance policies provide a payment to help producers replant after extreme weather destroys a planting.
Am I covered?
Most policies include a replant provision with the exception of group risk (GRP, GRIP, and ARPI) and catastrophic-level (“CAT”) policies.
The acres to be replanted must be:
- Originally planted on or after the earliest planting date;
- Either at least 20 acres total or 20% of the insured planted acreage (whichever is less);
- Affected by an insured cause of loss such as a late frost;
- Appraised as having an expected yield below 90% of the guaranteed yield in
- your policy;
- Determined to be “practical to replant” by an Authorized Crop Insurance Adjuster;
- Replanted with the original crop;
So your planting was destroyed, now what?
- Notify your crop insurance agent within 72 hours;
- An adjustor will appraise your expected yield and whether it is practical to replant;
- If applicable, replant with the original crop;
- Your original planting guarantee will continue as if nothing had happened (as long as you plant before the final planting date).
The replant payment is typically equal to the lesser of either your actual costs of replanting or a formula provided in your crop insurance policy provisions (for example: for corn, the per-acre replant payment equals the projected price/bushel x 8 bushels).
The Risk Management Agency Fact Sheet on Prevented Planting provides additional information.
Communicate with your agent about any issues with your crop, especially before planting deadlines. This is essential for receiving prevented planting or replanting payments.
Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation with the United States Department of Agriculture. University of Vermont Extension, Burlington, Vermont. University of Vermont Extension, and the U.S Department of Agriculture, cooperating, offer education and employment to everyone without regard to race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or familial status.
University of Vermont Crop Insurance Outreach Education
208 Morrill Hall