Published Jul 3, 2013

Crop Insurance, Cover Crops, Prevent Plant Oh My….

By Sarah Carlson

Practical Farmers of Iowa has been compiling information for farmers dealing with prevent plant acres and thinking about adding cover crops to those areas.

Check out a recent popular “farminar” and an article written by a group of cover crop enthusiasists to outline the potential economic returns realized from adding cover crops to prevent plant acres.

Cover crops and prevented plant information guidance

With rapidly developing policies on cover crops and extended wet weather during the planting season, farmers and ranchers may have numerous questions regarding the use of cover crops on acres qualifying for prevented planted provisions under crop insurance policies.  Below is clarification of the options farmers and ranchers may pursue when prevented planting occurs. For some producers, taking a reduced prevented planting payment and haying or grazing a cover crop may be the most economically beneficial option.  Be sure to discuss all options with your crop insurance agent.

 

Cover crop options for farmers and ranchers with prevented planting on fields without a double-cropping history can pursue the following strategies:

1. To maximize the prevented planting payment:

  • Declare prevented planting after the final planting date, leave the acreage idle (exposed, unplanted soil vulnerable to erosion, nutrient leaching and weed growth) and receive 100% of the prevented planting payment for that acreage.
  • Declare prevented planting after the final planting date, plant a cover crop, but do not hay or graze the cover crop until November 1 and receive 100% of the prevented planting payment for that acreage.
  • Declare prevented planting after the late planting period (if one exists for the insured crop), leave the acreage idle (exposed, unplanted soil vulnerable to erosion, nutrient leaching and weed growth) and receive a reduced prevented planting payment for that acreage.                               2. To provide some prevented planting payment with the option to provide some forage:
  • Declare prevented planting after the late planting period, plant a cover crop, but do not hay or graze the cover crop until November 1 and receive a reduced prevented planting payment for that acreage.
  • Declare prevented planting after the final planting date and late planting period, plant a cover crop after this period, hay or graze the cover crop prior to November 1 and receive a prevented planting payment equal to 35% of the original prevented planting guarantee for that acreage.                                                                                                                                                                        3. To maximize the forage opportunity:
  • Declare prevented planting and plant a cover crop before the final planting date or during the late planting period, hay or graze the cover crop prior to November 1 and receive no prevented planting payment.

For farmers and ranchers unfamiliar with cover crops, the following table provides some guidelines when considering options under prevented planting conditions.  Consult with your agronomist before making any changes to your cropping plan.  Also, be sure to consult with your county Natural Resources Conservation Service about cropping options under any program including EQIP, CSP, or other working lands contracts.

Table 1. Prevent Planting Options and Economics

Prevented planting (PP) options PP payment/acre Nitrogen Storage* Soil Erosion Prevention Value^ Fallow Syndrome Yield Reduction Average cover crop seed cost/acre Potential forage value/acre Return/acre
Option 1: PP after final plant date, leave acres idle $600 (100% of original PP guarantee) $20-$40 loss 

AVG $30

 

$7-$21 loss 

AVG $14

$30-$90 loss 

AVG $60

$0 $0 $496
Option 2: do not hay/graze a cover crop $600 (100% of original PP guarantee) $20-$40 

AVG $30

 

$7-$21 

AVG $14

$0 $50 $0-$200 (if harvestable after Nov 1) $794-$594
Option 3:  pp during late planting period, leave acres idle $594-$450 (100%-1% daily reduction; max 25 days) $20-$40 AVG $30 

 

$7-$21 

AVG $14

$30-$90 

AVG $60

$0 $0 $490-$346
Option 4:  

cover crop planted after late period

$594-$450 (100%-1% daily reduction; max 25 days) $20-$40 

AVG $30

 

$7-$21 

AVG $14

$0 $50 $0-$200 (if harvestable after Nov 1) $588 – $444: 

$788 – $644

Option 5: PP after late planting period, plant a cover crop, hay or graze before Nov. 1 $210 (35% of the original PP payment) $20-$40 

AVG $30

 

$7-$21 

AVG $14

$0 $50 $400-$1000 $604 – $1204
Option 6: pp before the final planting date, plant a cover crop, hay/graze before Nov 1  

$0 $20-$40 

AVG $30

 

$7-$21 

AVG $14

$0 

 

$50 $400-1000 $394 – $994

Values listed in red are to represent expenditures versus black numbers are additions.

Average of the range for Nitrogen Storage, Soil Erosion Prevention and Fallow Syndrome Yield Reduction are reported and used in the final calculations. Ranges are reported using the PP payment/acre and Potential forage value/acre. Estimates are taken from:

*Kaspar, T.C., and J.W. Singer. 2011. The use of cover crops to manage soil. p. 321-337. In J.L. Hatfield and T.J. Sauer (eds.) Soil management: Building a stable base for agriculture. American Society of Agronomy and Soil Science Society of America, Madison, WI.

Clark, A., (ed.) 2007. Managing cover crops profitably. Sustainable Agriculture Network, Beltsville, MD.

^Duffy, M. (2012). Value of Soil Erosion to the Land Owner (No. 34959).

ᴪEllis, J.R. 1998. Post flood syndrome and vesicular-arbuscular mycorrhizal fungi. Journal of Production Agriculture.  Volume 11, no. 2: 200-204

Troeh, Z.I., and T.E. Loynachan. 2003. Endomycorrhizal fungal survival in continuous corn, soybean, and fallow. Agron. J. 95:224-230.

Post Flood and Fallow Syndrome Examined by Daniel Wiersma and Paul Carter  Crop Insights.  Pioneer International.

FARMINAR – “Cover crop options for prevented planting acres in Iowa

This spring has presented challenging conditions for farmers hoping to plant corn and soybeans in Iowa and across much of the Midwest. Also, cover crops have become a popular choice for farmers looking to enhance soil health, improve soil structure, prevent erosion and reduce nitrogen and phosphorus loss on their farms. But many questions remain about which cover crop varieties to select and the practical management questions farmers must consider for all scenarios. Practical Farmers of Iowa along with the Agribusiness Association of Iowa/Iowa Certified Crop Advisers, Natural Resources Conservation Service and the Iowa Department of Ag and Land Stewardship invite you to learn and ask questions about how cover crops can successfully fit into prevented planting acres this year.
To participate in the farminar go to: http://connect.extension.iastate.edu/farminar Click “Enter as a Guest” and type in your first and last name. Click “Enter Room”
View Farminar

Please contact Sarah Carlson sarah@practicalfarmers.org with your comments about either prevent plant outreach information.