ADM CROP RISK SERVICES

2013 PREVENT PLANT

Definition of Prevent Plant• Failure to plant the insured crop by the final plant date

designated in the special provision for the insured crop in the county, or within any applicable late plant period, due to an insured cause of loss that is general to the surrounding area and that prevents other producers from planting acreage with similar land characteristics.

• Note: Failure to plant because of uninsured causes such as lack of proper equipment, or labor to plant acreage, or use of a particular production method is not considered prevent planting.

• Note: Failure to plant when other producers in area were planting MAY result in the denial of the prevent plant claim (Case by case situation).

Eligible Prevent Plant CropsPP coverage is applicable to the following

crops:Barley, canola/rapeseed, corn, cotton, ELS cotton, dry

beans, flax, grain sorghum, green peas, hybrid seed corn, hybrid grain sorghum, millet, mustard, oats, onions, peanuts, processing sweet corn, processing beans, popcorn, central and southern potatoes, northern potatoes, rice, rye, safflowers, silage sorghum, soybeans, sugar beets, sunflowers, and wheat.

Eligible AcresAcreage Eligible for Prevent Plant payment

must be:1. Insurable2. Be Available for Planting

* means land is free of trees, rocks, or other factors that would prevent proper and timely preparation of the seedbed for planting.

* Not available includes• -CRP acreage• -Perennial crop acreage (trees, vines)• -Acreage with pasture or forage in place (12 month prior rule)• -Acreage with pond vegetation (cattails etc.)• -Any other conditions that the AIP determines to prevent proper and

timely planting.FCIC states that it is improper to interpret the term “acreage unavailable for planting”solely based on the acreage qualifying for PP payments for a set number of years.*AIP must independently determine eligible acreage and PP eligibility based on each policyholder’s individual circumstance. (PP handbook pg. 128-129)

Eligible Acres3. Not be Uninsurable:

A. Acreage that has not been planted, harvested, or insured in any one of the three previous years.

B. On which the only crop planted, harvested in the three previous years is a cover, pasture, or forage crop.(unless the forage crop is part of an established crop rotation).

**Remember-Each Case need independent determination

4. The Maximum number of acres for PP coverage for all crops CANNOT exceed the number of CROPLAND acres in the insured’s farming operation for the crop year. *Unless the insured provides proof of double cropping history.

5. PP acres subsequently planted to a second crop are not used to determine eligible acres unless double cropping requirements are met.

Eligible AcresPrevent Plant Coverage will be provided for: Drought or failure of the irrigated water supply only if on

the Final Plant Date (or within the LP if the insured intended to plant the crop within the LP period.

- For non-irrigated acreage, the area that is prevented from being planted has insufficient soil moisture for germination of seed due to prolonged periods of dry weather (using information who’s business it is to record / collect weather data-example National Weather Service)

- For non- irrigated acreage, the area would be considered prevent from planting due to prolonged drought when the insured can provide verifiable documents that is acceptable to the AIP. 1. Documents that other producers with acreage with similar

characteristics are also prevented from planting. 2. Data showing prolonged precipitation drought for the area. 3. Written opinion from agricultural experts 4. Information showing insufficient moisture conditions existed on the

Final Plant Date or within the Late Plant Period .

Eligible AcresPrevent Plant Coverage will be provided for: Irrigated acreage if due to an insurable cause.

-The insured is unable to prepare the land for irrigation using the insured’s established irrigated method.

-Or the irrigation equipment or facilities fail or break down, provided the insured made all reasonable efforts to restore the equipment. (cost will not be a consideration)

-Or if there is failure of the irrigated water supply (i.e.. there is not reasonable expectation of having adequate water supply to carry out an irrigated practice).

The Inability to plant due to a large amount of silt, sand, or other debris left on land due to flooding that occurred during the PP insurance period and cannot be removed to the extent needed to plant the crop by the final plant date for the crop year.

Eligible Acres-ClarificationAcreage NOT considered available for planting

includes (but not limited to the following): 1. Acres enrolled in CRP. 2. Perennial crop acres (i.e. cover crop, pasture, trees, etc.

still on the acreage or not removed in time for planting). *Cover Crop –Pasture / Forage that are seeded, transplanted, or

volunteer more than 12 months prior to PP crop Final Plant Date. *Insured can demonstrate his intent to destroy the established

stand by: chemical kill, plow down. 3. Acreage that in a normal weather patterns is normally wet

throughout the final and late plant period, and would be only available for planting in abnormally dry conditions. Because of the normally wet conditions from year to year on such acreage, this acreage is likely to contain cattails, and perennial grasses and weeds. *Such acreage would not be available to plant a spring crop even though such acreage may have been tilled, planted, and or insured the previous fall.REMEMBER-case needs INDEPENDENT determination

Notice RequirementsInsured must notify the Insurance Provider is

they are prevented form planting an insured crop with PP coverage:Within 72 hours after the Final Plant Date.Or -when the insured determines he or she will

be unable to plant within any Late Plant Period. Note: Insured is not required to plant the insured crop during the late

plant period even if they could plant a crop during this time. Note: Failure to provide timely Notice of PP (above) will be considered

solely due to uninsured Cause of loss.

Unless: 1. AIP determines they can still accurately adjust the loss. 2. Notice was submitted prior to 60 days after CD for EIOP. 3. PP acres were timely submitted on the Acreage Report If either 1 or 3 are not met--No PP coverage is provided. No premium will be

owed , and No PP payment will be paid.

Notice RequirementsNotice of Loss Requirements for PP acreage

-Allows the Insurance Provider the opportunity:To inspect the PP acreage much earlierTo verify the Cause of Loss existedImprove program integrity

Acreage Reporting RequirementsThe Insured must report all acres on the

acreage report correctly.*PLANTED*PREVENT PLANTED

Revised acreage reports CAN NOT be accepted to add prevent plant after Acreage Reporting Date.

Determining The Eligibility For Reported Prevent Plant Acres1. Determined whole field acres per FSA measurement2. Partial fields- Always NEED TO BE DETERMINED:

GPS / WHEELED--verify on Insurance Schedule / FSA maps.

3. Any PP acreage within a field that contains planted acreage will be considered to be acreage of the same crop, type, and practice that is planted in the field.

4. If multiple crops are planted in a field, the insured may select which crop will be used for the PP acreage. -The PP acreage may be considered to be acreage of a crop /

type / and practice OTHER than which is in the field only if insured divided the field in that way in one of the past FOUR YEARS.

1 Field Example1st Field the PP can be listed as Corn or

Beans PP

ccco 1

Corn 55.2 A

Beans 34.0 A

6.2 A PP13.5 A PP

Corn 18.3 A

Beans12.5 AForage

20.0 A

18.0 PP Acres

Field 1

2nd Field does the insured qualify for a PP payment? 108.9 A in Field Bean field 34.0 + 6.2 A = 40.2 15.4 % of field PP –no 20 / 20 ruleCorn field 55.2 + 13.5 A= 68.2 19.8 % of field PP –no 20 / 20 ruleCombine 55.2 + 19.7 A= 74.9 26.3 %of field PP – Meets RULE

2 Field Prevent Plant ExampleIs there a PP payment?

ff

Fence line

50 A corn 42 A SB

13 A-PP

8.0 A-PP

Beans (N0) 50.0 A x .20 =10.0 NeededCorn (Yes) 63.0 A x .20 = 13.0 A Needed

2 Field Prevent Plant ExamplesI

15 A PP

30 A CORN

35 A SB 65 A CORN Is there a PP payment?

All in the Same Section / Unit 145.0 Acres

Corn PP? *No- 15 A doesn’t meet 20/20 15/110 A= 13.6 % of unitBeans PP? *Yes-15 A does meet 20/20 15/50 A= 30.0 % of unit

Eligibility Prevent PlantThe maximum eligible number of acres certified for

APH purposes, or insured acres reported for insurance for the crop in any one of the four most recent crop years.

Any eligible acreage will be reduced by subtracting the number of acres of the crop planted.

Eligibility- Changes Due to ADDED LAND / LOST LANDIncreases / Decreased of the maximum

eligibility PP acres for a crop due to the insured changing his or her cropland acres for the current crop year.

It is determined separately for each crop and practice (IRR / NI) by determining the Ratio of change and multiplying this ratio by the highest number of acres reported or insured in one of the last 4 years.

Intended Acreage ReportWhen in the 4 most recent years- an insured

did not plant any crops in the county for which PP insurance was available or has not received a PP insurance guarantee.

*The intended Acreage Report must be submitted by sales closing date.

-Acres can not exceed Cropland Acres -Intended Acreage Report cannot be altered -For example: If the intended acreage report indicates 1000

acres of corn. The insured cannot later 500 acres of corn PP and 500 acres of soybean PP. The PP must remain with the corn.

Acreage which in NOT eligible for Prevent Plant Coverage 1. That does not constitute at least 20 acres or 20% of the unit (which ever

is less). 2. If actuarial documents do not provide information needed to determine a

premium rate, unless a written agreement designates premium rates.

3. Acreage is used for conservation purposes, or intended to be left unplanted under any program administered by the USDA / other government agency.

4. On which the insured crop is prevented from being planted, if the insured or any other person receives a PP payment for any crop on the same acreage in the same crop year (excluding share agreements)- unless all the criteria for double cropping is met.

5. On which in insured crop is prevented from planting, if:A. Any crop is planted within or prior to the LPP. -exclusion- If double cropping requirements are met -exclusion- crop planted is a double crop -exclusion- no benefits from other USDA program was derivedB. Any volunteer or cover crop is hayed, grazed, or harvested within or prior to

the LPP

Acreage which in NOT Eligible for Prevent Plant Coverage 6. For which planting history or conservation plans indicate that the

acreage would have remained fallow for crop purposes or on which any pasture or forage crop is in place. (12 month in place rule)

7. That exceeds the number of acres eligible for PP payments. 8. That exceeds the number of acres physically available for planting 9. For which the insured cannot provide proof that he/she had

inputs available to plant the crop. 10. Based on irrigated practice production guarantee or amount of

insurance unless adequate irrigation facilities were in place to carry out an irrigated practice on the acreage prior to the insured cause of loss that prevented the insured from planting.

11. Of a crop type or variety that the insured did not plant or has not received a PP insurance guarantee in at least ONE of the LAST FOUR YEARS.

Acreage which is NOT eligible for Prevent Plant Coverage 12. Wheat that is short-rated (less than a full crop year coverage), is

not eligible for a PP payment, nor is it eligible for a PP payment from another crop unless it qualifies under the Double Cropping provisions of the PP section of the policy.

13. If a cause of loss has occurred that may prevent planting at the time: A. The Insured leased the acreage (except acreage leased the

previous year / carried over). B. The insured bought the acreage. C. The acreage is released from a USDA program which prohibits

harvesting a crop. D. The insured requested a written agreement to insure the

acreage. E. The insured acquired the acreage through means other than

lease or purchase (i.e. Inherited).

*NOTE- Acreage CAN NOT have a pre-existing condition to qualify for a prevent plant payment.

Prevent Plant Levels of InsuranceDefault Prevent Plant Guarantees for PP 60% Coarse Grain, Dry Beans, Dry Peas, Small Grains, Sunflowers,

Canola, and Safflower 50% Cotton 45% Sugar Beets 40% Green Peas, Process Beans, Process Sweet Corn 25% Potatoes

*Additional Levels of PP coverage No additional coverage for CAT policy

5% from the Base Guarantee listed above 10% from the Base Guarantee listed above

*Must be purchased additional levels by the Sales Closing Date *Insured CANNOT increase his / her PP coverage levels if- A cause of loss which

could prevent planting a crop occurred during the Insurance period and prior to the insured’s request.

PREVENT PLANT AVAILABLE FOR CAT POLICIES?

Prevent Plant IS available for Cat coverage!!!No written agreementNo additional level coverage available

Prevent Plant as It relates to Double-Cropping HistoryA full PP payment for a first crop is limited to the number of

acres that the insured can demonstrate he/ she has double-cropped and that has historically been double-cropped.

If-First insured crop was PP and the second crop is planted on the same acreage in the same year- regardless of whether or not the second crop is insured or sustains an insurable loss.

If-First insured crop was PP and the subsequent insured crop is prevented from being planted on the same acreage in the same crop year (can’t call the subsequent PP crop a second crop because it was not a planted crop).

If-First insured crop is planted and the subsequent insured crop is prevented from being planted on the same acreage in the same crop year (can’t call the subsequent PP crop a second crop since it is not a planted crop

If –First planted crop for the crop year is uninsured , but insurance is available for the uninsured crop, and a subsequent insured crop is prevented from being planted on the same acreage in the same crop year (the PP crop would be the first insured crop).

And All Double Cropping Criteria is met (next Page)

Double-Cropping Criteria1. It is a practice that is generally recognized by an agricultural experts in the area

to plant the insured crop for harvest following the harvest of the first crop.2. Additional coverage insurance offered under the authority of the Act is available

in the county for two or more crops that are double cropped3. The insured provides records proving double-crop history on the acreage.

*His / her own acreage and production records, that show the insured has double cropped acreage in at least 2 of the last 4 crop years.

Example- If the insured has double cropped history of 100 acres of wheat + beans, and he acquires an additional 100 acres. The insured can apply the 100 acres of double cropping history to any of the 200 acres as long as he doesn’t exceed the 100 acre history.

*Another person’s acreage and production records -That show the exact same acreage in the county on which the PP claim is being made, and for the current crop year-was double cropped in at least 2 of the last 4 crop years. Example- If a neighbor has double cropped 100 acres of wheat and soybeans in the county, and the insured acquired the neighbor’s 100 acres of double crop acres, and an additional 100 acres in the county. The insured can only apply the neighbor’s history of DC to the same 100 acres that the neighbor double cropped.

Prevent Plant as It relates to Double-Cropping History

Prevent Plant as It relates to Double-Cropping HistoryAcceptable Double-Cropping Records

-Crop Insurance records that show both production and acres (APH / Claim / Appraisals / Bin Measurements / Etc.).

-Elevator Ledger (i.e.. Settlement sheets showing amount of production from the double-cropped acreage).

-FSA documents, FSA maps

Double-Cropping history is specified by county in which the Prevent Plant claim is being made.

Delete acres

Report to a different crop

No

yes

Delete from acreage report

Reported to a different crop/practice/type/than

planted in the field

Meets 20/20 rule for total insurable acres in the field

yes

2 crop/practice/type history in the past 4 years

yes

Does the reported pp acres meet rotational requirements

yes

Meets 20/20 rule for total planted/pp acres in the unit

yes

Are these acres available for the PP crop

yespayable

Are the PP acres insurable

yes

How was PP reported

Reported to the same crop/practice/type as planted in the field or nothing planted in the

field

yes

Does reported PP acres meet rotation requirements

yes

Meets 20/20 rule for total insurable planted/PP acres in the unit

yes

Are there eligible acres for the PP crop

yes

payable

1. Not plant a second crop –or plant a cover crop and do not hay - graze it until after Nov. 1: Eligible for

100% PP payment. 2.Plant a second crop for Harvest (after the Late Plant

period for the 1st crop) : Eligible for 35% of the PP payment.

3.Plant a second crop for Harvest (prior to the end of the Late Plant Period for the 1st crop): Not Eligible

for a PP payment- the PP acres will need to be removed from the Acreage Report.

Insured’s Options

Payable using crop with the nearest liability

No

No

No

No

Delete from the Acreage Report-No

paymentException may apply

exceptio

n

Delete from the Acreage Report

Payable using the nearest crops liability

Delete from the Acreage Report – No

paymentException may

apply

Delete from the Acreage Report No

No

No

No

exceptions

Revise the PP

acres to the

crop/practice/type

planted in the field