Know Insurance Rules Before Walking Away from Planting Corn

Know Insurance Rules Before Walking Away from Planting Corn

Complex rules may be more intricate than you think.

June 5 is a magic day for corn planting in Indiana if you're in the federally-subsidized crop insurance program. According to an adjustor for crop insurance, various things happen.

One, after June 5 you could declare prevented planting on your acres you intended to plant into corn but which you haven't planted yet. This may come into play especially for farmers in southern and central Indiana with river bottom ground that may be slow to get back into condition where it can be farmed after flooding this spring.

If you declare prevented planting based on the June 5 date, you will receive 60% of your guarantee under crop insurance, the adjustor notes. Exactly what that amounts to and how it works out depends upon the type of coverage that you have.

You may still elect to plant corn after June 5 and remain in the insurance program, However, you lose 1% of your guarantee per day after June 5. That goes to June 30, which is the final planting date for corn under the crop insurance program. By then, you will have lost 25% of your guarantee.

If you haven't already applied corn chemicals that prevent you from switching crops, you could convert to soybeans and plant them. However, what most farmers may not realize, the adjustor says, is that you can't declare prevented planting for corn, collect on your crop insurance, and plant soybeans right away. Instead, you must wait until the end of the lat-plant date for corn, which effectively means you can't plant soybeans until July 1.

You can switch to soybeans without any problem on June 6, as long as you don't intend to declare prevented planting on corn. If you declare prevented planting on corn, then you must wait to plant soybeans, as noted. Plus, you lose credit for corn history, only getting 60% of what you were going to get. To top it all off, if you declare prevented planting of corn but then plant soybeans once you're allowed to do so, you only get 35% of the guaranteed payment you would be due for prevented planting of corn.

It doesn't take a rocket scientist to figure out that taking prevented planting on corn and planting soybeans in the same field doesn't turn out to be a real profitable combination. There are too many restrictions and hitches in the fine print that can make it a less profitable venture for you.

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