RMA Restores 5% Prevented Planting Option

USDA’s Risk Management Agency is bringing back an option for insured producers to purchase an additional 5% of Prevented Planting Coverage.  The option begins with crops associated with the August 31st filing date for the 2027 and succeeding crop years.

"So we had a lot of feedback after November 30, last year, when the prevent plant five buy-up was removed from the policies," said RMA Administrator Pat Swanson.  "And so we listened to the feedback, and I was very happy to be able to announce that we are bringing that additional buy-up option back to our farmers and giving them that opportunity to buy up that additional 5%.”

Swanson said the additional coverage is especially important when weather prevents a producer from getting a crop in the ground after investments have already been made

"As farmers and I, I'm a farmer from Iowa...when we have a flooding event that, you know, creates a problem that we're unable to plant our crops during the spring," Swanson said.  "You know, I know that it's, you know, very concerning for the farmers, and wanting them to be able to have this option to just give them a little more – this is only 5% additional coverage. So it's not like we're giving them a, you know, a lot more money, but just a little bit more to help with, with the expenses they've already had, you know, prevented planting is about helping them recover from the costs that they already have incurred by not being able to plant, you know, having already put some inputs in or paid for input. So this just gives them some of that helps them recover from some of that.”

But the additional coverage comes with a cost, so producers will have to weigh the risk on their own farms before deciding whether to buy it.

“And I was an agent for 20-some years. So I know when I worked with my farmers and talking through these options with them, you know, one of the things they consider is: how much of a risk am I in for not being able to plant? And, you know, it's all, it's about their farm and the risk they're willing to take and able to take on their own farm," Swanson said.  "And so that's one of the things with crop insurance, as farmers are making those decisions. And one of the things I always like to point out is that the farmer also is paying in this program as well. So this is a program where the farmer has skin in the game as well. So they're weighing their risk on their farm and what the opportunity for a prevented planting claim might be for them. So farmers, a lot of the farmers that I worked with over the last 20 years, you know, they put the put that option on once, and then they just kept it there for just every year. So that way it was there when they needed it.”

RMA says approved insurance providers will notify affected policyholders about the changes, and producers can also visit the RMA website for more information.

Swanson stressed producers should talk with their crop insurance agent to determine whether the additional 5% of prevented planting coverage makes sense for their operation.

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