Which Key Crop Insurance Deadlines Should Farmers Know?

In the unpredictable world of agriculture, crop insurance is the shield that safeguards farmers' livelihoods. As farm input costs reach record highs in 2023, risk profiles have never been higher.

As such, understanding and adhering to crop insurance deadlines is more important than ever. By holding to these deadlines, farmers can ensure eligibility for coverage, avoid penalties and late fees, and secure the necessary financial protection for their crops. 

In this article, we’ll explore the significance of crop insurance deadlines and provide essential information to help farmers navigate them successfully.

What is crop insurance and why do you need it?

The surge in expenses for crop inputs, including fertilizer, chemicals, seed, repairs, and labor, alongside higher cash rental rates, underscores the crucial importance of meeting crop insurance deadlines. 

Because if something goes wrong, whether it’s weather, a natural disaster, or other unforeseen event, crop insurance can help hedge against risk. And with slim profit margins this season, even a so-called “minor” incident can break your whole operation. 

Crop insurance falls into two broad categories: area and individual plans. 

Area plans, also known as Group Risk Plans (GRP), offer coverage based on the average yield or revenue of a designated area, such as a county or a region. If the average yield or revenue of the area falls below a predetermined threshold due to a covered peril, all farmers in that area receive indemnity payments, regardless of their individual losses.

Individual plans, such as Actual Production History (APH) or Yield Protection (YP), provide coverage based on an individual farmer's actual historical yields. The indemnity payment is determined by comparing the farmer's actual yield with the guaranteed yield and the projected price of the crop.

Crop insurance dates and deadlines

As with any program from USDA, crop insurance filings are far from simple and straightforward. By understanding key dates and deadlines, you can protect your operation from additional risk:

1. Avoiding penalties and late fees: Late reporting or payment can lead to penalties and can subject farmers to costly fees. By being proactive and adhering to deadlines, farmers can avoid unnecessary financial burdens.

2. Securing financial protection for crops: Meeting crop insurance deadlines ensures that farmers have the necessary coverage in place to protect your investment. This protection can prove invaluable in the event of unforeseen crop losses.

3. Adhering to federal regulations and compliance: Crop insurance deadlines are established by federal regulations. Complying with these deadlines is essential to remain in good standing with federal programs and maintain eligibility for assistance. 

Here are some of the important planting dates, sales closing dates and crop insurance deadlines you should keep in mind. 

Earliest planting date

To safeguard crop insurance policies, farmers need to stay informed for important planting dates. It's important to note that planting crops before the specified earliest planting date renders them ineligible for replanting payments.

Final planting date

To receive the full yield or revenue guarantee selected for your crop insurance policy, acres must be planted on or before the final planting date. Any acres planted after this date will have a reduced guarantee. 

It is important to promptly report your planting date to your crop agent within three days. In some cases, the insurance provider may allow replanting of a damaged crop within ten days after the final planting date.

End of late planting period

For certain crops, there is a 25-day late planting period following the final planting date. During this period, the value of the yield or revenue guarantee diminishes daily as the potential for late-planted crops to yield lowers. 

Once the late planting period expires, corn maintains 55% coverage and soybeans retain 60% coverage, regardless of the absence of a substitute crop in the event of prevented planting.

Be advised that initial and final planting dates for crop insurance may vary by state. Be sure to consider your state-specific deadlines.

Sales closing deadlines

The sales closing date is the deadline for purchasing or modifying crop insurance policies for the upcoming season. It is essential to consult with insurance agents to make any necessary adjustments to coverage before this date, ensuring eligibility for coverage, avoiding penalties, and securing financial protection for your crops.

Key closing dates are March 15 for spring-seeded crops, and September 30 for fall-seeded crops. 

Acreage reporting deadlines

The acreage reporting date is the deadline for reporting the number of acres planted to each insured crop. Accurate and timely reporting is necessary to adhere to federal regulations and compliance, preventing any potential complications or delays. Additionally, it helps insurance providers calculate premiums accurately ensuring eligibility for coverage.

Key reporting dates are July 15 for spring-seeded crops and December 15 for fall-seeded crops. 

Prevented planting options

If unforeseen circumstances keep you from getting your crop in the ground by the final planting date, you can become eligible for a prevented planting payment. However, this only applies if you meet certain criteria:

• Timely notification. Farmers must notify their insurance company within a specified timeframe, typically within 72 hours of the decision to forgo planting due to an eligible cause.

• Insurable interest. The farmer must have a share in the crop or a financial interest in the farming operation.

• Qualifying causes. Prevented planting payments are typically available when planting is prevented due to natural events like excessive rainfall, flooding, drought, or other adverse weather conditions recognized by the policy.

• Acreage requirements. There may be specific requirements regarding the minimum acreage or the percentage of intended planting acreage that must be affected to qualify for prevented planting payments.

• Adherence to planting deadlines. Farmers must follow the planting deadlines specified in their crop insurance policy. Failure to meet these deadlines may impact eligibility for prevented planting payments.

Eligibility is determined on a case-by-case basis, and the acreage must have been normally available for planting, planted in at least one of the last four years, and meet all other applicable policy provisions.

Late planting

Plant the insured crop during the late planting period, if applicable. The timely planted production guarantee may be reduced for each day planting is delayed after the final planting date. It is important to be aware of frost risks, particularly when planting corn after June 10.

Plant a second crop

Plant a different crop before the end of the late planting period. The second crop receives full insurance coverage as if it were the original crop. Coverage for the first crop is terminated, and coverage for soybeans may be reduced if planted after June 10.

Plant after the late planting period

Plant the insured crop after the late planting period, or after the final planting date if a late planting period is not available. In this case, the insurance guarantee will be the same as prevented planting coverage, which is 60% for soybeans and 55% for corn. Planting a second crop after the late planting period may result in a payment of 35% of the prevent plant indemnity.

Leave the ground fallow or plant cover crops

Leaving the acreage fallow or planting cover crops can qualify you for a full prevented planting payment. It is important to carefully discuss the cover crop option with your crop insurance provider, ensuring compliance with haying and grazing restrictions.

Final thoughts on key crop insurance deadlines

Understanding and meeting crop insurance deadlines is crucial for farmers in securing financial stability and protecting their agricultural investments. By ensuring eligibility, avoiding penalties, and complying with federal regulations, farmers can navigate the complexities of the crop insurance process, avoiding undue risk in this difficult season.