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Replanting Coverage: If an insured crop is severely damaged due to a natural peril such as hail or frost and is projected to produce less than 90 percent of the guaranteed yield, the producer can receive a replanting payment equal to the projected price each year multiplied by the following: 8 bushels for corn 3 bushels for soybeans The minimum area rules also apply for replanting payments, and the same crop must be planted again. The same production guarantee is still in effect, based on the original planting date. The replant option is not available for catastrophic level coverage (CAT) or group risk policies (Area Risk Protection Insurance (ARPI) Products). Example 4 illustrates how a replant payment for soybeans might occur.

Example: Replanting Your insured soybean crop is hit with hail, and is projected to yield only 19 bushels per acre. You decide that it would pay to replant. Your APH yield is 50 bushels per acre. You have chosen to insure with an RP policy at the 80 percent yield level with a price election of $10.00 per bushel. Your revenue guarantee is $400 per acre: 80% x 50 bushels x $10.00 = $400 per acre The projected yield of 19 bushels is less than 90 percent of the guaranteed yield: 90% x (80% x 50 bushels) = 36 bushels Therefore, you would receive a replant payment equal to the indemnity value of 3 bushels of soybeans per acre, or $30.00 for this example. 3 bushels x $10.00 = $30.00

Planting a Second Crop: If the producer elects to plant a different crop in place of the original crop, the area must first be released by the insurance provider. If the second crop planting date is on or before the late plant period (June 14th for corn and July 7th for soybeans), the insurance coverage and premium for the first crop are eliminated, and the second crop can receive full insurance coverage, the same as if it were the original crop. If the second crop planting date is after the practical to replant period, different rules apply. If the second crop is not insured, the producer will receive 100 percent of the indemnity payment due on the first crop, based on an adjustor’s estimate of yield loss (Example 5), and have no coverage on the second crop. If the second crop is insured, the producer will first receive 35 percent of the loss payment on the first crop. If the second crop does not have a loss, the other 65 percent of the first crop loss will be paid after harvest. If a loss claim is filed on the second crop, however, the producer can choose to take the second crop payment or the remaining 65 percent of the first crop payment, whichever is greater (Example 5). Whenever the producer receives only 35 percent of the payment for the first crop, whether planted or not, only 35 percent of the original premium for the policy on those acres will be charged.

Example: Plant a second crop Your corn crop was planted before the final planting date, but later hail damages it severely. The crop loss is projected by the adjustor to be 30 bushels per acre below your 140 bushel guarantee (175 bu. x 80%). You decide to tear it up and plant soybeans on the same acres. If you do not insure soybeans on this unit, you will receive a corn indemnity payment equal to 100 percent of your loss: 30 bushels x $4.00 = $120 per acre If you do insure soybeans on this unit, you will receive a payment equal to 35 percent of corn loss: 35% x 30 bushels x $4.00 = $42 per acre If you insure the soybeans with an RP policy at the 80 percent level, with an APH yield of 50 bushels per acre, your revenue guarantee will be: 80% x 50 bushels x $10.00 = $400 per acre If the soybeans yield only 25 bushels per acre at harvest and the fall price is still $10.00, you could receive a soybean payment of: $400 - (25 bu. x $10.00) = $150 per acre You can take the larger of the soybean payment or the remaining corn payment. In this example the additional corn payment is: 65% x 30 bushels x $4.00 = $78 per acre If you choose to receive the soybean payment, you will pay 35 percent of the corn premium and all the soybean premium.

Please use the link below as a reference if you are thinking about replant. 



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