UPDATED Prevented Planting Disaster Payments, October 4, 2019
Editor’s Note: RMA’s Frequently Asked Questions for Prevented Planting Disaster Payments can be found here. We suggest you continue to monitor for more updates.
Q: What are prevented planting disaster payments?
A: Prevented planting disaster payments are authorized by the Additional Supplemental Appropriations for Disaster Relief Act of 2019. The prevented planting disaster payments provide supplemental payments to producers that have been prevented from planting an eligible crop and had coverage under Federal crop insurance.
Q: Who is eligible to receive a prevented planting disaster payment?
A: Producers participating in Federal crop insurance for the 2019 crop year and experienced a payable prevented planting payment related to an eligible cause of loss in the 2019 calendar year. The eligible causes of loss are excess moisture/precipitation, flood, cold wet weather, storm surge, tornado, volcanic eruption, hurricane/tropical depression, and cyclone.
Q: How do I sign up for a prevented planting disaster payment?
A: If you received a prevented planting payment from an Approved Insurance Provider and you meet the eligibility requirements, you are automatically signed up to receive a prevented planting disaster payment.
Q: How much of a payment will I be eligible for?
A: The amount of payment will be an additional 10 or 15 percent of your prevented planting payment issued under your multi-peril policy, depending on the plan of insurance of your multi-peril policy. Producers with Yield Protection/Actual Production History and Revenue Protection with Harvest Price Exclusion will receive 10 percent. Producers with Revenue Protection will receive 15 percent.
Q: Will my prevented planting disaster payment be reduced if I planted a second crop and did not meet double crop requirements?
A: Yes. The payment will be based on the amount of the qualifying prevented planting payment received from your insurance provider. The payment is a percentage increase of the payment you received based on crop insurance eligibility.
Q: Which crops qualify?
A: All crops for which the final planting date for the 2019 crop year is in the 2019 calendar year are eligible for prevented planting disaster payments.
Q: What if I have a crop that is normally planted in 2018 and harvested in 2019 but was prevented from being planted in the fall of 2018? Is the crop eligible for a prevented planting disaster payment?
A: No. A crop that was prevented from being planted in 2018 that had a final planting date in the 2018 calendar year is not eligible for prevented planting disaster payments. The legislation authorizing prevented planted disaster payments is specific to crops that would have been planted in the 2019 calendar year.
Q: Are prevented planting disaster payments available where my farm is located?
A: Yes. Prevented planting disaster payments are available nationwide.
Q: When will I receive a payment?
A: Your insurance provider will begin processing payments as early as mid-October 2019. As more claims are processed, further payments will be issued near the middle of each subsequent month.
Q: What Approved Insurance Providers have agreed or not agreed to participate in the prevented planting disaster payment programs?
A: RMA received commitments from the country’s 14 AIPs to deliver the top-up payments:
- ACE Property and Casualty (Rain and Hail) Insurance Company
- American Agri-Business Insurance Company
- American Agricultural Insurance Company
- CGB Insurance Company
- Church Mutual Insurance Company
- Country Mutual Insurance Company
- Farmers Mutual Hail Insurance Company
- Great American Insurance Company
- Hudson Insurance Company
- NAU Country Insurance Company
- Producers Agricultural Insurance Company (ProAg)
- Rural Community Insurance Company
- Stratford Insurance Company
- XL Reinsurance America Inc.
Q: I was prevented from planting my crop, but my multi-peril policy does not provide prevented planting payments for that crop. Am I eligible for a prevented planting disaster payment?
A: No. Prevented planting disaster payments are only available for crops with existing prevented planting payments.
Q: Are disaster benefits for prevented planting available to me if I did not purchase Federal crop insurance or insurance was not available to me?
A: Benefits may be available depending on your eligibility as specified in the Wildfire and Hurricane Indemnity Program Plus (WHIP+) program or other Farm Programs. You should inquire at your local USDA Service Center or visit the Farm Service Agency website at www.fsa.usda.gov to find out more information.
Q: Do payment limitations apply to the prevented planting disaster payments?
A: No, the payment limitations required under the WHIP+ program are not applicable to prevented planting disaster payments.
Q: Who can I talk to for more information about the program?
A: RMA’s Regional Offices should be the first point of contact for any additional questions you may have. Visit www.rma.usda.gov/RMALocal/Field-Offices/Regional-Offices to find contact information for yours.
Two Year Crop Insurance Purchasing Requirement
Q: If I receive a prevented planting disaster payment, am I required to purchase crop insurance in the future?
A: Yes. The Disaster Relief Act requires all participants who receive a disaster payment to purchase crop insurance or NAP, for the crop in the county, for the next 2 available crop years. Producers may meet the requirement by purchasing Whole-Farm Revenue Protection crop insurance, if eligible. Producers that fail to meet this requirement must refund all payments for the crop in that county, including interest.
Q: Do I need to keep my insurance policy for next year if I receive a prevented planting disaster payment?
A: Yes, if you receive a prevented planting disaster payment for a crop you must purchase crop insurance for that crop in that county for the next two crop years, but you may transfer to a new insurance company or agent. If crop insurance becomes unavailable for the crop in the county you are required to purchase a NAP policy instead.
Q: Am I required to insure all my crops?
A: No, you are only required to purchase crop insurance on crops in the county for which you received a prevented planting payment.
Q: What if I don’t purchase crop insurance or NAP coverage for the two years after I receive a prevented planting disaster payment?
A: You will be required to repay the full amount of prevented planting disaster payment you received, plus interest if applicable.
Q: If I don’t plant the crop for which I received a prevented planting disaster payment (due to retirement, entity changes, or rotation, for example) in the next two years do I still need to have a crop insurance or NAP policy?
A: No, you are not required to have an insurance policy for years in which you do not plant the crop in the county.
Q: May I switch insurance companies over the 2 years I am required to purchase crop insurance?
A: Yes, you may insure with any company or agent. You simply must maintain coverage for the crop in the county.
Q: If the policyholder dies, how does that affect the two year requirement?
A: It depends on who receives the payment and whether they continue to farm. If the person (including legal entities) who receives the payment plants the crop in the county, then they must purchase crop insurance for the next 2 crop years. If the person who receives the payment does not plant the crop in the county, then there is no requirement. For example, a spouse that assumes the policy and continues to farm must still purchase insurance. An estate that ceases to engage in farming would not be required to buy insurance.
Q: Is there a minimum amount of insurance I must purchase after receiving a prevented planting disaster payment?
A: No. You may purchase any level or type of coverage to meet the two year requirement as long as it covers the crop in the county that you received a payment for.
Source: USDA RMA FAQ
ProAg Participates in Automatic Prevented Planting Top-Up PaymentsSeptember 26, 2019
RMA FAQ | Prevented Planting Disaster PaymentsOctober 17, 2019
PM-19-048 WFRP Plan of Insurance Modifications for 2020August 30, 2019
Strong Claims Response Helps Farmers Deal with Tough SpringSeptember 4, 2019
USDA Resources Available for Farmers Hurt by 2018-2019 DisastersSeptember 9, 2019