Stu Ellis : 2013 Corn Crop: Where It Is And Where It May Be Going

By Stu Ellis
Farmgateblog

Corn planters, which covered 42 million acres of ground the week of May 12th, slowed considerably this past week and covered 14 million acres for the period beginning May 19th.  When USDA issued its weekly crop progress report Tuesday, it found 86% of the US corn crop had been planted, with another 14 million acres to go.  And questions are certainly justifiable about how much of that will be planted to corn, enroute to USDA’s March 28th estimate of just over 96 million acres.

USDA’s National Agricultural Statistics Staff issued its weekly Crop Progress Report , and found some states that were well behind the pace earlier in the month had caught up.  However, other states, with a significant amount of intended corn acres were rained out of the field the past week as the prevented planting crop insurance dates arrive.

Crop progress update for corn:

States that were less affected by the 2012 drought had indicated a greater intention of increasing their corn acreage.  Subsequently, almost half of the 2013 corn acres were expected to be in NE, MO, IA, MN, ND and SD.  Heavy rains this past weekend has brought planting to a halt, but progress was slow prior to the weekend, where wet fields hampered corn planting.  Currently, planting ranged from 72% to 91% complete in those states, but it also represents 6.4 mil. acres of corn which are not planted, and will likely not be planted by June 1, based on soil conditions and weather forecasts.  Where corn is planted, it is 54% emerged, up from 19% previous week, but below 5-yr average for the week of 67%.

Crop progress update for soybeans:

Although Cornbelt farmers are planting soybeans a bit later than normal, there is still time to secure good yields if the weather cooperates.  USDA Tuesday reported soybean planting is 44% complete. Illinois and Iowa are at 40% emerged with Indiana at 60% emerged.  Again, wet forecast will keep progress slow this week. Nationally, 14% of soybeans are emerged, up 11 points on the week, but still 16 points behind the five-year average for the week.

Prevented planting

While farmers are optimists and all expected to get all of their acreage planted resulting in a bumper crop, the topic of prevented planting has never crossed anyone’s mind.  While the following information is something farmers will not need, they can just make note of the fact it was offered. (He said with tongue in cheek.)

There are two sources for information about prevented planting.  One is your crop insurance agent.  You have his business card somewhere with his phone number; and it may also be in your telephone book.

The other resource is USDA’s handbook on prevented planting.  Consult your agent first.

Prevented planting keys on a specific date, which enables a producer to obtain 60% of his guarantee, if the crop could not be planted by that date.  An alternative is to plant the crop after the date, which declining coverage each day that passes without the crop being planted. Your prevented planting deadline depends on your state and in many cases your county. If you are unaware of which group your operation is in, check with your crop insurance agent.

Prevented planting deadlines

Someone with a Revenue Protection crop insurance policy with 80% coverage and a 150 bushel Actual Production History (APH) can determine his prevented planting payment, which will be based on the $5.65 spring price guarantee.  Multiply the spring price by the 80% coverage level and by the APH yield to get a minimum guarantee of $678 per acre for crop insurance.  If the 60% prevent planting payment is the producer’s choice, the payment would be $407, or $678 multiplied by 60%.

If you pursue planting, and are able to get planted by June 15, in a state where the deadline was May 31, your guaranteed coverage will be the $678 per acre, minus 15%, or $576.

While these are only two quick examples, there are many more provisions of the USDA’s Prevented Planting guide, and that is why there are 116 pages.  You can look up the answer to your question, or consult your crop insurance agent, which should always be part of the final action.

Summary:

While progress has been made toward completion of corn planting, nearly 14 million expected acres remains unplanted due to wet conditions.  Operators of those acres may well be exploring the details of prevented planting in their crop insurance policy to determine what action they want to take.  Before any decision is made, one should consult his crop insurance agent.

Source : Farmgateblog