Preventive Planting (PP) Claims

Recently we have had several questions regarding potential Preventile Planting (PP) claims. First question that always comes up centers around the notice of loss:

In the event you are prevented from planting an insured crop you must notify us within 72 hours after the final plant date for that crop. AN ADJUSTER MUST DOCUMENT YOUR FIELD TO PROVE TO FEDERAL CROP THAT ON THAT DATE YOU WERE PREVENTED FROM PLANTING. This applies if you do not intend to, or will not be able to, plant the insured crop during the late planting period.

To file PP it must be common in your area, and also to qualify it has to be 20 acres or 20% of the unit. Insured’s who have increased their prevent plant coverage will be paid 70% of their liability (guarantee); if you have not increased your prevent plant coverage you will be paid 60% of your liability (guarantee). “CAT” policy holders qualify only for 60% of their liability (guarantee). Under the 2011 Basic Provisions, prevented planting payments for YP (Yield Protection..formerly MPCI) and RP (Revenue Protection) will be based on the projected price only.

If you are prevented from planting a crop for which you do not have an adequate base of eligible prevented planting acreage, the claim department will use acreage from another crop insured for the current crop year for which you have remaining eligible prevented planting acreage. The crop first used for this purpose will be the insured crop that was prevented from being planted. If there are still insufficient eligible prevented planted acres, the next crop used will be the insured crop that would have the next closest prevented planting payment. REMEMBER: starting with the 2011 crop year, the PP payment may not exceed the amount payable for the crop that was prevented from being planted.

Regardless of the number of determined eligible acres, prevented planting coverage WILL NOT be provided for any acreage:

1. IF ANY crop is planted within the late planting period, or prior to the final planting date, on the ground that you filed a preventive planting claim.

2. UNLESS, the crop planted is an acceptable cover crop, or you derive no benefits from this crop including USDA benefits.

It is very important to remember, in order to collect 35% of the PP payment on corn you must wait until the END of the late planting period to plant a second crop. The late planting period is 20 days after the final plant date for the crop in question. Corn’s late planting period is June 1 to June 20 and Soybeans is June 21 to July 15.

Another important issue is that when you are paid for PP acres, the production reported for your APH in that year will be calculated accordingly. For example: If you file PP on the first crop (e.g. Corn) and you plant a second crop after the 20 day late plant period, the PP claim will be paid at 35% of the first crop PP payment and your APH will be 60% of the approved yield. Your premium will also be reduced to 35% on the first crop.

If you collect 100% of the PP payment your APH will not be affected. If a second crop is planted on the acres that was declared prevent plant on, those acres will show in your history with an assigned yield. However, you will be able to hay or graze this ground but not until on or after November 1st. If you plant, you will be subject to repaying 65% of the indemnity that was paid to you.

If you have any questions, please don’t hesitate to contact us.

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