Prevented Planting Rule Narrows Farm Risk Management Options

Prevented planting coverage pays farmers when adverse weather keeps insured crops from being planted.

agricultural land affected by flooding crop insurance_Photo By Andrii Yalanskyi via Adobe Stock.jpg

Photo By Andrii Yalanskyi via Adobe Stock

WASHINGTON, D.C. (RFD NEWS) — Farmers will have less flexibility to target early-season planting risk under the USDA’s Expanding Access to Risk Protection (EARP) rule. Hunter Biram with the University of Arkansas and Francis Tsiboe with North Dakota State University say the change removes prevented planting buy-up coverage beginning with the 2027 commodity year.

Prevented planting coverage pays farmers when adverse weather keeps insured crops from being planted. Historically, producers could buy extra protection for that risk without increasing broader crop insurance coverage.

The new rule eliminates that option. Farmers seeking similar prevented planting protection may need to raise their overall crop insurance coverage, which can increase premiums and expand exposure across the policy.

Past experience shows producers may adjust slowly. After the 10 percent prevented planting buy-up was removed in 2018, some farms gradually shifted from 75 percent coverage to 80 percent and 85 percent levels.

The concern is most direct for farms with high planting risk and already strong coverage levels. Some may not be able to fully replace lost protection.

Farm-Level Takeaway: Producers should review prevented planting exposure before 2027 coverage decisions narrow their risk management options.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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