Records key to revenue guarantees
MANLY – A standing-room-only crowd packed the Bethel United Methodist Church meeting room on May 31 as farmers flocked top Manly top hear what strategies to consider for getting the remainder of their row crops planted in June.
The meeting was important to more than farmers as there were lenders, crop insurance agents, and FSA employees in attendance.
Crop insurance options included late planting, prevented planting, replanting, and switching to a second crop.
Two main points were stressed at the meeting. These were:
- Keep crop insurance agents informed about anything growers are going to do.
- Keep accurate records of crops and dates.
Kelvin Leibold, an Iowa State University Extension farm management specialist, discussed the choices available to farmers under their crop insurance coverage.
For farmers who have not finished planting corn, they have three choices.
They are: plant corn late, plant soybeans instead, or declare prevented planting.
Leibold described the choice to plant corn late saying it was a “pretty good strategy.”
A chart of Leibold’s showed that corn and soybeans planted by June 16 would yield about 70 percent of those crops planted before May 5.
Late planting for Iowa is June 1 through June 25 for corn and June 16 through July 10 for soybeans.
Crops planted during these days will expect a lower yield or revenue guarantee.
Normal date planted acres are averaged with late planted acres by each day of being late to calculate the average guarantee per acre.
Prevented occurs when the crop planting date goes past the late planting date allowing the producer to not plant the crop at all.
Under this situation, the producer receives a guarantee of 60 percent of the original guarantee.
If prevented planting is chosen, a cover crop is required and it cannot be sold or harvested nor can the land be rented out.
Soybeans can be planted as an alternative crop after June 25 on fields originally meant for corn and the farmer will receive a payment of 35 percent of the prevented planting payment for corn.
Farmers considering replanting have the choices of leaving the crop as it is, replanting to corn or replanting to soybeans.
To qualify, the adjuster must project that the yield will be less than 90 percent of the guaranteed yield.
The maximum payment for corn is 8 bushels and 3 bushels for soybeans multiplied by the price election in the policy.
This results in $45.20 for corn and $38.61 for soybeans.
Farmers with unplanted soybeans have the choices of planting them late, or declare prevented planting after June 15 and receive a guarantee that is 60 percent of the original guarantee.
Farmers with soybeans planted can leave the crop as it is or collect a replant payment if available.
To collect a replant payment, the damage must be due to a natural peril and the adjuster’s projected yield must be less than 90 percent of the guaranteed yield.
The maximum payment will be for 3 bushels times the policy’s price election.
The affected area must be at 20 percent of the insured area or 20 acres, whichever one is the smaller number.
The Ag Decision Maker website has a spreadsheet titled Late Planting Analyzer, decision file A1-57, to assist farmers in making their decisions.
ISU Extension field agronomist Mark Johnson spoke on maturity selection and used the planting date of June 11 because, “I figure that is when you will get back in the field.”
Johnson told farmers in north central Iowa to use 93- or 98-day hybrids up until June 25, because hybrid maturities after June 25 “were all poor.”
Johnson said that replant should be done only when corn population is below 10,000 plants per acre.