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Apr 16, 2015
ASA President Wade Cowan wrote to the Risk Management Agency (RMA) to comment on a new evaluation of prevented planting published by the Agency. The evaluation recommended that no change is warranted in the prevented planting payment factor of 60 percent for soybeans.
“We note that prevented planting claims have been 13 percent of total indemnities for soybeans the last 20 years, and that excess moisture/precipitation was the cause of loss for 94 percent of the total,” the comments state.
ASA also weighs in against one proposal floated by the evaluators: “We also agree with the assessment that eliminating the buy-up option for prevented planting would probably result in an increase in the prevented planting component of the rate for basic coverage. We see no need to penalize the majority of policy-holders who do not collect on prevented planting coverage by allowing those with greater prevented planting risk to avoid paying a premium for it.”
Click here to read the entire letter.
