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Big-time crop insurance deadlines looming

Agriculture.com Staff 02/06/2016 @ 5:35am

The clock is ticking for Iowa farmers to make some key planting and crop insurance decisions. Wednesday, June 25, is an important date in Iowa.

In terms of crop insurance coverage, farmers can still plant corn after this date. However, coverage changes when you plant after June 25 in Iowa. That's because it's the last day of the late-planting period for corn. For corn planted after May 31, the insured has lost one percent of coverage per day since June 1. On June 26, that coverage drops to 60% of the guarantee on Multi-Peril Coverage; CRC, RA and APH policies, if the insured chooses to keep that 2008 coverage in place.

The insured should have already notified their crop insurance agent and likely have had an adjuster on-site. Should the insured choose to claim prevented planting on those acres, they have 72 hours after this final day of the delayed planting period (June 28 in Iowa) to file such a claim. They will receive 60% of their insurance guarantee minus the premium. They must also complete FSA Form 576 -- Lost Acreage and Prevented Planting as well as certify planted acres on FSA Form 578.

If the insured had already planted a First Crop (ie. corn), and chooses to plant a second crop (soybeans), they should make sure they have documentation that the adjuster has "released those acres." They can claim up to 100% of the guarantee minus the premium on the First Crop. The decision to plant a second crop requires that it be planted after the late planting period for the first crop (June 25 in Iowa).

This only applies if the insured is claiming Prevented Planting on the first crop that was already planted. Insureds do not need to wait until June 26 to plant, but only make sure that those acres had been released by the insurance company. The second crop is automatically insured, unless a form provided by their crop insurance agent is signed prior to planting that crop.

The decision to insure the second crop means that only 35% of guarantee on the first crop will be released minus 35% of the premium. With large guarantees likely available on the first crop (ie. corn), the decision to claim 100% of the guarantee minus the premium and "not insure the second crop" will be common.

It's late June and the stakes are high. Decisions beyond agronomics loom regarding whether to plant the first or second crop, what portion of the crop insurance guarantee to claim and whether to insure a crop planted after the late-planting period.

The clock is ticking for Iowa farmers to make some key planting and crop insurance decisions. Wednesday, June 25, is an important date in Iowa.

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