"This is a different game for 2019 because the revenue guarantee is so much lower for corn and soybeans than it has been in recent history," Johnson said. "So the reality of prevent-plant is much different than it was. That's why I don't think it will be as big a deal as 2013 because of the financial constraints on a lot of these farms right now."

Johnson cautions producers to push a pencil and have a long talk with their crop-insurance agent about their specific policies before making any decision. If they haven't already, farmers should be photographing the damage to their fields.

"You need to make sure you are working with your crop insurance agent and documenting any sort of loss," Johnson said.

Farmers renting ground also have to consider their rental agreement and landlord before filing a prevented-planting claim.

"If you are a cash-rent farmer, you better make sure you understand the landlord is still expecting their cash rent," Johnson said, noting a high percentage of payments could go to landlords. "So there are issues that are interacting with prevent-plant, and it's going to be high emotion. We're going to have a month of high anxiety."

Extension economists that write for the University of Illinois publication FarmdocDaily (https://farmdocdaily.illinois.edu/…) have done some analysis showing the level of prevented planting for corn is also about 1.2 million acres larger than average when late corn planting is 10% or more higher than average. (https://farmdocdaily.illinois.edu/…)

For farmers who have to consider prevented-planting claims, final planting dates and late-planting periods for crops vary from state to state. It's important to check with the insurance requirements in your state and county for final planting dates needed for prevented-planting claims.

Farmers must notify their insurance agent of a prevented-planting claim within 72 hours of the end of the late-planting filing period. That would be June 28 for corn and July 13 for soybeans in Iowa, and in Nebraska it is June 22 for corn and July 8 for soybeans.

The final planting date in Iowa for corn is May 31, in Nebraska it's May 25, and in northern Missouri the counties are divided between those two dates.

There can be confusion over the term "final planting date," Johnson notes. That simply means the final date for full insurance coverage. After that date, crop insurance protection then moves into a late-planting period that lowers the guarantee 1% per day over the next 25 days.

For soybeans, the final planting date is June 15 in Iowa and June 10 in Nebraska. Northern Missouri has another divide between counties that goes to June 10 in northwest Missouri and June 20 in central and eastern Missouri. Again, the late-planting period lowers coverage 1% per day for the next 25 days after those dates.

The Farm Service Agency also requires that prevented-planting acreage be reported on form CCC-576, Notice of Loss, no later than 15 days after the final planting date.

Farmers are not required to plant during those late-planting days, but if you do, you are not eligible for prevented-planting payments. You can notify your crop insurer and shift acres from corn to soybeans.

Prevented planting pays 55% of the initial revenue guarantee for corn and 60% on soybeans. For example, a farmer with 176-bushel Actual Production History (APH) on corn who bought 80% coverage would see a payment of $309.76 an acre (176 x 0.80 x $4 = $563.20 x 0.55 = $309.76).

A soybean farmer with a 50-bushel APH who has 80% coverage could expect a payment of $228.96 an acre. (50 x 0.80 x $9.54 = $381.60 x 0.60 = $228.96).

Crop insurance also has a 20/20 rule for prevented planting. A minimum of 20 acres or 20% of the farm unit must be affected.

Farmers who file prevented-planting claims also are allowed to plant a cover crop on the affected acreage. However, if a farmer intends to hay or graze the cover crop, the producer must wait until Nov. 1 before haying or grazing to receive the full prevented-planting indemnity payment. If a farmer grazes or hays that cover crop before Nov. 1, then the prevented-planting indemnity would be just 35% of the potential payment.

The same scenario applies if a farmer has a prevented-planting claim but decides to plant a second crop after the final-planting cutoff. If a farmer plants a late-season soybean crop on a field claimed for prevented-planting of corn, then the farmer could still receive 35% of the indemnity and pay 35% of the premium. The second crop's yield also would affect the Actual Production History for next year.

More details on prevented planting can be found at https://blogs.extension.iastate.edu/… and https://www.rma.usda.gov/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on Twitter @ChrisClaytonDTN

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