Prevented Planting Option Ended

USDA Racks Up Cost Savings by Dialing Back Indemnity Potential for Prevented Planting Claims. Farmers in Northern Plains states and parts of the Corn Belt will lose the prospect of larger potential payouts under prevented planting claims following a crop-insurance change announced earlier this week by USDA's Risk Management Agency.For years, the Obama administration repeatedly sought a $1.4-billion cost savings over 10 years by asking Congress to reform prevented planting coverage by eliminating the option of buying 10% higher coverage for prevented planting. Without calling on Congress, the Trump administration made multiple changes to prevented planting insurance this week in line with spending cuts proposed in the Obama era.On Monday, in a memo sent out to insurers and USDA Risk Management Agency field offices, USDA eliminated the Prevented Planting +10 Percent Option for the 2018 crop year and future crop years. USDA kept the 5% option for farmers, though analysis shows very few farmers have taken the 5% option. The 10% option paid out more than $4 billion in indemnities from 1994-2013.