Weather Pushes Interesting Debate at Planting Time
Late planting is bringing a rare decision for a lot of corn farmers with looming final planting dates.
Compiled by staff
Published: Jun 1, 2011
No matter where you raise corn if you're not getting seed in the ground you may be faced with a difficult decision by Sunday. June 5 is the final plant date for corn in many parts of the Midwest providing farmers with a range of decisions.
For example, Kirk Scott, crop insurance specialist for Farm Credit Services of Mid-America notes that farmers can opt for prevent plant, or ride out the situation and take a reduce insurance guarantee. Most crop insurance policies have a late planting period, and in some states the clock starts ticking June 5 for corn. Acres planted after that deadline will receive a lower revenue guarantee than those planted by the deadline.
Here are some choices Scott notes are possible:
Plant the original crop after the deadline, even with the risk of reduced yields.
Plant an alternative crop such as soybeans.
Let ground sit idle or plant a cover crop to receive the full prevented planting payment - the ground can't be harvested until after Nov. 1.
Take 'prevented planting' and get 35% of the claim on corn and pay 35% of the premium - but you can't plant soybeans until July 1.
Each choice carries consequences. Best strategy is to talk with your crop insurance specialist to determine your options and the cost for those choices. Each decision has long- and short-term consequences. Talk to your agent this week to determine the best course of action for your farm.
With the nation's corn crop falling behind - Ohio, according to the May 31 crop progress report, has planted just 19% of its corn crop so far - these decisions will have broader implications for the market and your risk management plan as well.
Keep tabs on prevent planting acres, they will influence the markets later in the season.
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Tagged: insurance, farm, soybeans, corn crop, Farm Credit Services
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