Late/Prevented/Replant Planting Emmet & Palo Alto Counties May 29, 2018 Gary D. Wright Farm Business Management Specialist (712) 223-1574 gdwright@iastate.edu

Late and Prevented Planting Late Planting Period begins the day after the final planting period and ends 25 days after final planting date. Corn – June 1 – June 25 Soybeans – June 16 – July 10 During late planting period, coverage is reduced 1% per day and drops to 55% for corn and 60% for soybeans (5% buy-up available)

Late and Prevented Planting A cover crop may be planted but is not required To receive crop insurance indemnity payment, cover crop cannot be harvested or grazed until after November 1

Replanting When the original crop has already been planted, but is severely damaged due to frost, hail, wind, flood waters other natural occurrences. Options available: Leave the damaged crop as it is. Replant the same crop. Plant a different crop (1st Crop, 2nd Crop) Abandon the acres, plant a cover crop. Source: ISU Extension Publication A1-57

Replanting NEWLY DEFINED FOR 2018: May be deemed “practical to replant” if within 10 days after late planting date (Corn – June 10; Soybeans – June 25) Communicate regularly with your crop insurance agent and/or adjuster. Document the date, conversation and what you understood them to say. Source: ISU Extension Publication A1-57

Source: ISU Extension Publication A1-57

Source: ISU Extension Publication A1-57

Source: ISU Extension Publication A1-57

What is the planted or intended crop?

Has the corn crop been planted yet?

Corn Has Not Been Planted Plant corn late. Plant soybeans instead. Declare prevented planting (after May 31).

Delayed Planting Final planting date (Iowa): Corn May 31 Soybeans June 15 After the final planting date the insurance guarantee is reduced 1% per day for 25 days. Late planting period: Corn: June 1-25 Soybeans: June 16-July 10 Acres planted after this will be insured at 55% for corn and 60% for soybeans of the original guarantee. Corn —after June 25 Soybeans —after July 10

Estimated Yield Loss due to Late Planting

Prevented Planting - A If planting is prevented until after the final planting date, the crop may left unplanted. A prevented planting guarantee equal to 55% on corn or 60% on soybeans of the original guarantee is in effect.

Corn is Already Planted Leave the crop as it is. Replant to corn. Replant to soybeans.

Prevented Planting - B If planting of soybeans as an alternative crop is delayed until after the end of the late planting period for corn (June 25), a payment equal to 35% of the prevented planting payment for corn is paid (even if soybeans are planted)

Replant Insurance Coverage Damage must be due to a natural peril Adjustor’s projected yield must be less than 90% of the guaranteed yield Maximum payment is the price election in the policy x: 8 bushels for corn 3 bushels for soybeans Affected areas must be at least the smaller of 20 acres or 20% of insured area.

Replanting to a Second Crop (Soybeans) If the first crop is damaged, soybeans can be planted. No replant payment. Is the soybean crop insured? If not, 100% of any indemnity payment can be received on the corn (if the projected yield/revenue is less than the guarantee).

Soybean Crop is Insured If the soybeans are insured, 35% of any indemnity payment on the first crop is paid. If there is no loss on the second crop, the other 65% is paid after harvest. If there is a loss on the second crop, the larger of the soybean loss or the remaining 65% of the corn loss is paid.

What is the planted or intended crop?

Have the soybeans been planted?

Soybeans Have Not Been Planted Plant soybeans late Declare prevented planting After June 15: A prevented planting guarantee equal to 60% of the original guarantee is in effect

Soybeans Already Planted May be deemed “practical to replant” prior to June 25 Leave the crop as it is. Replant payment may be available Damage must be due to a natural peril Adjustor’s projected yield must be less than 90% of the guaranteed yield Maximum payment is the price election in the policy x 3 bushels for soybeans Affected areas must be at least the smaller of 20 acres or 20% of insured area

Late or Prevented Planting Acres with reduced guarantees are averaged in with acres in the same insurance unit that were planted before the final planting date. Indemnities paid are based on the average yields for all the acres of that crop in the insurance unit.

Decision: Compare! Potential revenue from crops Potential insurance payments Replant coverage Yield/revenue coverage Additional production costs for planting, replanting, or harvesting

Decision: Compare / Other Considerations Crop rotations Fertility and/or weed management already applied? Production Needs Feed Marketing Plan Prevented planting does not require a cover crop but is encouraged. Cover crop cannot be harvested or grazed until after November 1. Prevented planting land cannot be rented out.

Late Planting Analyzer Available on the Ag Decision Maker Website from ISU Extension www.extension.iastate.edu/agdm/ Decision file A1-57 EXCEL spreadsheet

Extension Crop Insurance Web Page Ag Decision Maker – ISU Extension and Outreach (Decision Tools, Newsletters, Publications, Voiced Media) www.extension.iastate.edu/agdm/cdcostsreturns.html

www.extension.iastate.edu/agdm/crops/xls/a1-57delayedplantingevaluator.xlsx

Current Corn Futures 4.17 4.16 Source: CME Group, 5/16/2018

Current Soybean Futures 9.86 9.60 Source: CME Group, 5/16/2018

What questions do you have?

References Dr. Chad Hart Associate Professor Iowa State University Dr References Dr. Chad Hart Associate Professor Iowa State University Dr. Alejandro Plastina Extension Economist Iowa State University Dr. William Edwards Economist (retired) Iowa State University Ag Decision Maker: http://www.extension.iastate.edu/agdm/

Thank You! Gary D Wright Farm Management Specialist (712) 223-1574 gdwright@iastate.edu Update this with your own information