The Risk Management Agency released new rules yesterday on prevented planting in the Prairie Pothole Region to help clarify eligibility for growers.
Following the drought in 2012, there was a great deal of confusion from farmers about whether or not a successful crop counted in the RMA’s 1-in-4 rule. Many areas were deemed as an abnormally dry year, which disqualified a successful crop as such in terms of eligibility.
With this clarification, the 1-in-4 rule still applies, but does not include the abnormally dry provision. But, once the farmer is unable to plant, he or she must successfully plant and harvest a crop for two straight years.
For more information, read the release below:
RMA Clarifies Prevented Planting Standards in the Prairie Pothole RegionWashington, D.C., August 26, 2013 – The USDA’s Risk Management Agency (RMA) today announced a new Special Provision statement to clarify acreage eligible for prevented planting in the Prairie Pothole National Priority Area. The statement refers to prevented planting and acreage that is physically available for planting in regions of Iowa, Minnesota, Montana, North Dakota and South Dakota for the 2014 crop and succeeding crop years. “The goal is to make Federal crop insurance policy more objective and to provide clarity for the producers facing prevented planting losses,” said RMA Administrator Brandon Willis. The new provision will require that in order for acreage to be eligible for prevented planting payments, the acreage must have been planted and harvested (or incurred an insurable loss other than for excess moisture) in one out of the last four years, regardless of whether one of those years was abnormally dry. The new Special Provision creates a more objective means for determining acreage eligible for prevented planting than the current rule. However, once the producer is unable to plant and harvest on certain acreage in one of the four most recent crop years, the producer will need to demonstrate the land is farmable by planting and harvesting (or incurring an insurable loss other than for excess moisture) two years in a row. The statement was developed by RMA in response to recommendations made by crop insurance companies, the USDA Office of Inspector General, and producers in the Prairie Pothole regions. To be eligible for a prevented planting payment, a cause of loss that prevented planting must have occurred within the prevented planting insurance period for both new (on or after the Sales Closing Date) and carry (on or after the Sales Closing Date for the previous year) policies. For more information, producers should contact their crop insurance agents. #