Historic flooding in the early spring and record rainfall across portions of the Corn Belt led many in the industry to expect prevent plantings, i.e., the failure to plant an insured crop, to reach record highs in 2019, and the latest crop report bears that out. Prevented planting payments provide crop insurance benefits to policyholders to compensate for pre-planting costs incurred in preparation for planting the crop. For some farmers, these indemnity payments may exceed the economic returns associated with a late-planted and poor-yielding crop. The previous prevent plantings record, set in 2011, was just shy of 10 million acres for the eight principle crops (Prevent Planting Implications for 2017). Recently released Farm Service Agency crop acreage data revealed that as of late August prevent plantings were record-high at nearly 20 million acres, more than double the previous record. Prevented planting across all major crops was the highest in South Dakota at 3.9 million acres….
Source: US prevent plantings in 2019 at 20 million acres, more than double the previous record