WORTHINGTON — Many farmers are concerned about cool spring weather and cold soil temperatures. Usually, farmers have already started planting. Hopefully the weather will warm up and the planting will progress.
Farmers began to discuss the prohibited plantations. As the planting season progresses, farmers will have to decide whether to plant or not. The final planting dates for corn growers are May 25 (northern Minnesota) and May 31 (southern Minnesota). June 10 is the final soybean planting date for the entire state.
If you decide not to plant, there is a formula to use to determine your prevented planting rate. There is a simple payment rate of $5.90, multiplied by your APH and your insured percentage multiplied by 55% to get your prevented planting rate for corn. For example, 85% coverage is $5.90 * 180 bushels (APH) * 0.85 * 0.55 = $496.49 per acre less premium. For soybeans: $14.33*50 bushels (APH)*.85 *.60 = payment of $365.42 per acre less premium.
For each day after your final planting date, your coverage decreases by 1%. If you planted corn on June 9, your coverage level would decrease by 9%, from 85% coverage at $5.90 * 180 * 0.85 = $902.70, to $5.90 * 180 * 0.85 * 0.91 = $821.46, with crop yield potential at least 36 bushels lower than 144 bushels. Selling those bushels for $7.15 cash in the fall would yield $1,029.60 and there would be no crop insurance payment. There would also be higher drying costs and lighter test weights with this example.
If you decide to plant soybeans on June 15, your coverage will decrease by 5%. Your coverage would go from $14.33 * 50 bushels * 0.85 = $609.03 to $14.33 * 50 * 0.85
*.95=$578.57. What will your actual return project be on June 15? Less than 35 bushels? Thirty-five bushels at $14.64 or a total of $512.40 per acre. There would be an insurance payout in this example of over $66.17 per acre with total costs per acre projected at $551 per acre.
If a farmer chooses the prevented planting option, the yield used for their APH will not be affected unless a second crop is planted. The yield used for 2022 would be 55% APH agricultural corn and 60% APH soybeans. The current fall prices available show that a farmer would be able to cover their costs by planting, even after the final planting date.
There is a spreadsheet that shows revenue impacts based on several scenarios at extension.iastate.edu/agdm/crops/html/a1-57.html. For more information, search the University of Minnesota Extension website at extension.umn.edu and type prevented planting in the search field.