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Drought and Prevent Planting Crop Insurance

Picture of a field during a drought

Some producers have a misconception that they can collect prevent plant crop insurance proceeds because of drought. Prevent plant crop insurance is for producers who cannot plant because conditions do not warrant it.

Usually, that means wet, mud or excess moisture conditions in which planting cannot occur or will occur after the late planting date. Prevent plant loss claims are a discounted amount from a normal loss.

Drought is not one of those prevent plant conditions. In a drought situation, the producer still is able to plant. It may not be the wisest decision to seed and fertilize in dry conditions when the odds of the crop not germinating are high, but that is the rule.

Latest Drought Monitor Map of the U.S.
Latest Drought Monitor Map of North Dakota

According to Risk Management Agency (RMA) guidelines, a producer must use “best practices” in planting, maintaining and harvesting a crop. If seeding and fertilizing a crop in dry conditions is done and the drought persists, producers can file a claim if a loss occurs. Producers can collect regular crop insurance proceeds on a loss and it would offset cash outlays of planting expenses. Producers might be better off this way, depending on their individual situations.

In rare circumstances, the RMA has made drought a prevent plant condition, but it is very rare and conditions must be extreme.

Contact your crop insurance agent for further information.

Ron Haugen, NDSU Extension Farm Management Specialist