Posted May 28, 2014
Sen. Heidi Heitkamp, D-N.D., and
Rep. Collin Peterson, D-Minn., asked the U.S. Department of Agriculture to
consider delaying the final crop insurance planting deadline for corn this year
and other crops in the coming years, according to an article on Agweek by
Mikkel Pates available here. Crookston Times also published an article available here, and Fox
News KVVR published a summary available here.
Even though farmers experienced a
wet, late planting season, the request was denied as farmers approach planting deadlines for full crop insurance compensation on
various crops.
On May 19, the National Agricultural
Statistics Service (NASS) pegged corn planting progress at only 17 percent in
North Dakota and 53 percent in Minnesota while South Dakota is at 73 percent.
In the letter, Peterson wrote, "In
many parts of my district, wet weather has prevented farmers from even getting
fields ready for planting, much less actual planting." “My growers would
rather produce a crop than collect a prevented-planting claim. Moving the dates
back would give them that opportunity, while lowering indemnities paid out due
to prevented planting.”
Doug
Hagel, regional director for the federal Risk Management Agency (RMA), based in
Billings, Mont., says the contracts with reinsurers are submitted in the summer
of the previous year and finalized on Nov. 30 each year. “After that period, you can’t change anything
without having some impact with the producers — you don’t want to do that — or
with the insurance companies who are carrying the risk,” he says.
Hagel
recognized it is more likely to talk about changing policies for future years,
which is based on research and statistics from universities and the
Agricultural Research Service among others. He acknowledges farmers can still
plant during their late planting period, however, they faced reduced coverage
that offsets the risks.
“But
the new varieties are changing, getting better — getting out of the ground
quicker and moving faster” in development, Hagel says.
Sugar
beet cooperatives in the region have also been talking with RMA about changing
the deadlines, from May 31 to June 10, in future years, he says.
To
see a list of planting date for other crops also approaching or have passed,
visit the article here.
Scott
Stofferahn, Executive Vice President for Golden Growers Cooperative, which is
based in Fargo, N.D., a part-owner of the ProGold LLC corn fructose plant in
Wahpeton, N.D., says it is better for processors, ethanol makers, and livestock
producers to have farmers plant corn and other crops, as opposed to have
millions of acres go unplanted.
For
example, if the guarantee goes down by 5 percent because of a five-day delay,
that means a loss of RMA protection on five bushels. At $4 a bushel, that
amounts to $20 per acre.
As
of May 19, North Dakota is the furthest behind in the region in planting.
For more information on crop
insurance, please visit the National Agricultural Law Center’s website here.
