Planting After Final Planting Date
Planting Corn after the Final Planting Date
Famers can still plant corn after the final planting date. If they do, they will not receive a prevented planting payment. Also, the guarantee will be reduced by 1%/day for each day after the final planting date up to 25 days after the final planting date. After 25 days, the guarantee will be 60% of the original guarantee.
To illustrate, take a farmer having an RP policy with a minimum guarantee of $814/acre from the above example. Note that this is a minimum guarantee, as the guarantee can increase if the harvest price is above the projected price. If the harvest price is above the projected price, the higher harvest price is used in calculating guarantees. Assume this farmer is in a county with a final planting date of June 5. If corn is planted on or before June 5, the minimum guarantee is $814/acre. A 1% reduction occurs if planting takes place on June 6 and the guarantee is $807 ($814 x (1-.01)). Planting on June 7 results in a 2% reduction, or $799 ($814 x (1-.02)). After 25 days, the guarantee is 60% of the original, or $488/acre ($814 x .60).
Plant Soybeans after the Corn Final Planting Date
Soybeans can be planted on acres intended to be planted to corn. In this case, there will not be a prevented planting payment for corn. The soybeans will be insured if the farmer has elected to insure soybeans. This will be a normal soybean policy, unless soybeans are planted after the final planting date for soybeans (in mid-June). In this case, the guarantee is reduced, similar to that in the above example for corn.
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