C OVER C ROP C ONSIDERATIONS FOR 2013: C ROP I NSURANCE C HANGES Paul D. Mitchell Agricultural and Applied Economics University of Wisconsin, Madison,

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Presentation transcript:

C OVER C ROP C ONSIDERATIONS FOR 2013: C ROP I NSURANCE C HANGES Paul D. Mitchell Agricultural and Applied Economics University of Wisconsin, Madison, WI, USA Wisconsin Crop Management Conference Madison, WI January 16, 2013

Previous Crop Insurance Rules Pertaining to Cover Crops Suppose a farmer planted a cover crop in the summer/fall after harvesting another crop The cover crop was not insurable Could harvest/graze this cover crop that fall Next spring, had to terminate the cover crop before it reached the headed or budded stage Could not harvest the cover crop before planting a follow crop (grazing not mentioned) Perennial crop such as alfalfa could not be harvested before planting the follow crop

New Crop Insurance Rules Pertaining to Cover Crops for 2013 Only Suppose a farmer planted a cover crop in the summer/fall of 2012 after harvesting another crop The cover crop is not insurable (NO CHANGE) Could harvest/graze this cover crop during the fall of 2012 (NO CHANGE) Have to terminate the cover crop before it reaches “headed or budded stage (NO CHANGE)

New Crop Insurance Rules Pertaining to Cover Crops for 2013 Only Cover crop must be planted at most 12 months before the insured crop (CLARIFICATION) Have to terminate the cover crop before planting the insured crop (CLARIFICATION) Can harvest the cover crop before May 10 and before planting the insured crop (DATE SET) Grazing now explicitly considered harvest (CLARIFICATION) Perennial crop (alfalfa) still cannot be harvested before planting the insured crop (12 Month Rule)

Summary Farmers can harvest or graze cover crops for forage in the spring of 2013 and still insure the follow crop (RULE CHANGE) Must balance forage needs and prices against soil moisture and expected grain prices Cover crops consume soil moisture, especially when removed from the field Label for herbicides applied to previous crop may mean it’s illegal to harvest cover crop for “food or feed” (See Vince Davis WCM Article)