What Happens to my APH if I take Prevented Plant?

Hello Producers- this is Steve with Dick Sims Crop Insurance. I wanted to address the questions we have been getting involving PP and your APH.  Hopefully your agent highlighted this consequence way back last June when you were weighing your options of claiming PP for 55% or 60% of full crop insurance guarantee, but a refresher is always good. The questions at the time were:  Do I still try to plant my original intended crop at a reduced guarantee? Do I switch from corn to beans and plant beans before June 20? Do I plant beans after June 25th and take PP on corn and Late Plant beans? How does that all play out down the road? The answer to these questions depends on which option you chose.

Scenario #1
You decided to plant any original crop in 25-day Late Plant planting period and did NOT claim any PP

> In this case – actual yields are used for APH regardless of amount of delayed planting.

Scenario #2
You decided not to plant any crop (except a cover crop to keep weeds controlled) and claimed PP

> This is the most popular PP option for our clients who did take PP in 2019. This option has a neutral effect on the farmer’s APH. That is to say it has the same effect on a database’s average yield as if the field was simply rotated out of the insured crop. Since no insurable crop was planted, the farmer’s APH is not affected.

Scenario #3
You decided to switch intended crop (say from corn to soybeans) and claimed PP

Since the second crop is planted, it MUST be insured if there was insurance for that crop elected on or before March 15, 2019. The second crop must have been planted AFTER June 25 for corn and July 10 for soybeans. If the insured farmer plants a second crop they will still receive 35% of the indemnity for the prevented planting crop and pay only 35% of the premium.

> Planting a second crop on prevented planting ground affects the following year’s APH: 1st Crop – you get 60% of the approved yield (190 bu/A APH X 60% = 114 bu/A) even though you did not plant the crop—Ouch!!

> 2nd Crop – actual yields are used for APH

Scenario #4
You decided to switch intended crop (say from corn to soybeans) and did not claim PP

> Since the second crop is planted it MUST be insured if there was insurance for that crop elected on or before March 15, 2019. The second crop is fully insured if planted before June 25 for corn and July 10 for soybeans.

> 2nd Crop – actual yields are used for APH regardless of timely or delayed planting.

So for the majority of producers, the treatment of PP on non-planted or fallow PP ground, the RMA actually incentivizes you to take the fallow full PP option as it best protects those future database yields that will stay with you at least the next decade or perhaps two if you rotate! 

Keep safe out there– Steve

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