Your crop insurance policy includes a few additional provisions to help during rough planting seasons that occur due to weather.
Replant
Your MPCI policy has a replanting provision. For 2018 and beyond, it will be up to an adjuster to determine if your farm was “practical to replant” before you are eligible for a replant claim under your MPCI policy. Keep in mind the following:
- You must replant at least 20% of the planted acres in the unit or 20 acres, whichever is less. This is the 20/20 rule.
- You cannot do you initial planting of the crop BEFORE the Early Plant Date for the crop
- You will be required to replant the crop within the first 10 days of the Late Plant Period of the crop
Once you qualify for a claim, you are paid 8 bushels x the spring price for corn and 3 bushels x the spring price for soybeans. You are required to call your agent to turn in a notice of loss prior to doing any replanting to qualify for a claim.
Some companies offer extra replant coverage that can eliminate the deductible (20/20 rule) portion of the MPCI replanting provision, pay you if you plant before the Early Plant Date for the crop and increase your payment amount. If you replant on a regular basis, this coverage is highly recommended
Prevent Plant
If you cannot get your initial planting in due to poor weather conditions, you may claim Prevented Planting if you qualify within the 20/20 rules. The prevented planting acres must be 20% of the unit planted to that crop or a total of 20 acres, whichever is less. You are required to call your agent within 72 hours of your decision (no later than 72 hours after the end of the late planting period for the crop) to take prevented planting. As a reminder, final planting dates are June 5th for corn and June 20th for soybeans.
Keep in mind when you decide to take a prevent plant claim
- Prevent Plant acres must be reported on your acreage report for the year
- If you certify at FSA, prevent plant acres must be on your certification
- Prevent Plant claims are required to be common in the area and the adjuster will have to collect substantiating documentation that shows this (soil maps, weather data, FSA data, topography maps, pictures of your farm, etc.)
- Any ground that you would like to take prevent plant on has to be available for planting per the guidelines set forth by RMA.
Prevent plant claims will pay you 55% of your crop insurance guarantee on corn and 60% of your crop insurance guarantee on soybeans. Extra buy up options are available to add to your policy.
Failed Crop
If you have a failed crop claim and you wish to plant that ground to another crop, you have a couple of options to consider.
Option 1 following a failed crop – You choose to insure the 1st crop only: You are paid 100% of the 1st crop loss and pay 100% of the 1st crop premium.
Option 2 following a failed crop – You choose to insure both crops: You are paid 35% of the 1st crop loss and pay 35% of the 1st crop premium. You pay 100% of the second crop premium. If the 2nd crop has no loss, you may go back and pay the other 65% of the 1st crop premium and collect the other 65% of the 1st crop loss. If you have a loss on the 2nd crop, you may collect whichever claim gives you the greater benefit.
The best thing you can do when struggling with a wet planting and growing season is to call you agent to go over your options and the best course of action for your farming operation