Ag Weather Forum

Many Issues For Northern Corn Belt

Bryce Anderson
By  Bryce Anderson , DTN Senior Ag Meteorologist
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Following is a good rundown on issues that are still prominent in the Upper Midwest regarding planting and crop management issues. The article was written by Kent Thiesse, farm management analyst and vice-president at MinnStar Bank in Lake Crystal, MN.--Bryce

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The cool, wet weather conditions continued during the week of June 3-9 across the areas of Southern Minnesota and Northern Iowa, which have been hardest hit with delayed corn and soybean planting in 2013. There was some limited corn and soybean planting completed in wettest areas of Southeast Minnesota and Northeast Iowa, while planting progress was more prevalent in South Central and Southwest Minnesota, and adjoining areas of Iowa. Most of the planting focus has now switched from unplanted corn acres to the unplanted soybean acres.

May 31 was the final date to plant corn in Minnesota and Iowa and receive full crop insurance coverage. Now that we are passed that date, many farm operators with unplanted corn acres, who had a significant crop insurance guarantee, have opted to collect the prevented planting crop insurance payment, rather than planting a corn crop in 2013. The prevented planting crop insurance payment was 60 percent of the original crop insurance guarantee. It is not known how many producers or how many corn acres will be impacted by prevented planting for the year. Some livestock producers have continued with late planted corn past June 1, in order to assure adequate feed needs for their livestock.

In the USDA Weekly Crop report on June 3, there were 57 percent of the soybeans planted in the U.S., compared to a normal soybean planting of 74 percent on that date. In Minnesota, only 55 percent of the soybeans were planted by June 3, compared to a normal planting level of 88 percent, while in Iowa a mere 44 percent of the soybeans were planted by June 3, which is far below the normal level of 91 percent. Soybean planting across the two States made some progress during the week of June 3-9, but was very slow in the extremely wet areas of Southeast Minnesota and Northeast Iowa.

The prevented and delayed corn and soybean planting in Minnesota is likely to have a bigger impact on the final statewide average yield in 2013 than in some other years, due to the fact that the unplanted acres are in some of the highest production areas of the State. In 2011 and 2012, The Southeast MN region had an average corn yield of 179.3 and 178.5 bushels per acre, respectively, compared to statewide average yields of 156 and 165 bushels per acre. Similarly in soybeans, the Southeast MN average yields were 47.3 and 50.3 bushels per acre in 2011 and 2012, compared to the statewide average soybean yields of 39 and 43 bushels per acre for those two years. Most of the hardest hit counties of Minnesota are in the portions of the State with some of the highest historic production.

While many producers have finalized their decision for crop insurance prevented planting for unplanted corn acres, the prevented planting decision is not quite as easy with soybeans. The Final Planting Date for soybeans, in order to receive full crop insurance coverage for 2013, is June 10 in Minnesota and the northern two-thirds of Wisconsin, and June 15 in Iowa and the southern one-third of Wisconsin. The late planting period for soybeans extends for 25 days until July 5 in Minnesota and Northern Wisconsin, and until July 10 in Iowa and Southern Wisconsin.

For crops planted after the final dates for the late planting period, crop insurance coverage is set at a maximum of 60 percent of the original insurance guarantee, which is the same as the prevented planting insurance coverage. Once the Final Planting Date for soybeans has been reached (June 10 or 15), farm operators can opt to take the prevented planting insurance coverage, which is 60 percent of the crop insurance guarantee, if they have that coverage option, rather than planting the crop. Soybean yield potential in Southern Minnesota is probably 35-40 bushels per acre, when planting in mid-June.

Every farm situation is different when it comes to making a decision on whether to utilize the prevented planting option, so it is important for producers to make individualized decisions for each farm unit. Crop producers will have different yield potential, crop expenses, land costs, etc. on various farm units, as well as differences in their level of crop insurance coverage. All of these factors become important when evaluating prevented planting crop insurance decisions. Producers should contact their crop insurance agent for more details on final planting dates and prevented planting options with various crop insurance policies, before making a final decision on prevented planting. Producers need to report prevented plated acres to their crop insurance agent.



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