What is Prevented Plant and Replant Coverage?

Prevented planting coverage provides producers valuable protection in the event they are unable to plant an insured crop by the final planting date or during the late planting period due to an insured cause of loss. When adverse weather prevents planting, a prevented planting payment is made to compensate for the producer’s pre-planting costs generally incurred in preparation for planting the crop.

The amount of prevented planting coverage is calculated as a percent of the insurance guarantee the insured would have had for a timely planted crop. For example, suppose a producer’s insurance guarantee is $100 an acre. If the producer insures a crop with a 60% prevented planting coverage factor, the prevented planting payment would be $60 (or 60% of the guarantee). The prevented planting factor varies by crop, based on an estimate of pre-planting costs.

In certain areas for acreage to be eligible for PP coverage, it must be available for planting and meet the “1 in 4 rule.” The “1 in 4 rule” states that land must be planted, insured, and harvested in at least one of the four most recent crop years. Please check your actuarials for this rule.

Prevented planting coverage factors are designed to provide protection based on pre-planting costs generally incurred up to the point of planting the crop. Fixed and variable costs, established from available national and state crop budgets, are compared to average insurance guarantees to establish prevented planting coverage factors.

These costs can include purchase of machinery, land rent, fertilizer, actions taken to ready the field, pesticide, labor, and repairs. The prevented planting factor is a percentage of the individual insurance guarantee and varies by crop, based on an estimate of pre-planting costs.

*NOTE* Do NOT replant until an adjuster has contacted you. 

Replanted Crop is the same agricultural commodity replanted on the same acreage as the first insured crop for harvest in the same crop year (CY). If the insured elects to replant the crop and insure it under the policy covering the first insured crop or replanting is required by the policy.

To qualify for a replant claim, you must meet the following guidelines. Make sure to contact your crop insurance agent for more details regarding Replant Payments.

• Acreage must be deemed practical to replant.
•  Acreage must be greater than 20 acres or 20% of the acreage, determined on a unit basis.
•  A previous replant payment must not have been made on the same acres in the same CY.
•  The remaining crop must appraise at less than 90% of the production guarantee for the acreage.
• Acres being replanted must have been initially planted on or after the “Earliest Planting” date established by the actuarial documents.
•  Certain claims will qualify for a Self-Certification Replant depending on your AIPs specifications.
• Insured crop must be damaged by an insurable cause
• AIP must have given consent to replant.
• To estimate the corn replant amount per acre:
  • The formula is [8 bushel per acre] x [spring price] x[share] (the spring price in Indiana was $4.66)
•  To estimate the soybean replant amount per acre:
  • The formula is [3 bushel per acre] x [spring price] x[share] (the spring price in Indiana was $11.55)