§1508a Double insurance and prevented planting

Summary

First crop means the first thing planted on a field that is insured that year. Second crop means a crop planted on the same field later that year (but not a replanted crop). Replanted crop means the same crop put back in the ground because the insurance policy requires it. If the first crop is partly or totally lost, the farmer has two choices. They can not plant a second crop and get 100% of the insured loss. Or they can plant a second crop and get a smaller payment set by the Corporation, up to 35% of the loss. If they choose the smaller payment and the second crop does not suffer a loss, they can later get the rest so the total equals 100% minus what they already got. Premiums are lowered when the payment is reduced and adjusted later if the farmer ends up owed more. The same two choices apply if the first crop was prevented from being planted, with the 35% limit applying to the prevented-planting guarantee. For prevented planting, the agency will only pay when nearby farmers are also affected, and no prevented-planting payment is made if the farmer plants the second crop before the first crop’s latest planting date. The agency may assign a recorded yield of 60% of the farmer’s normal yield for that year unless double-cropping rules apply. Full payments for two or more crops can be allowed in areas where double cropping is a normal practice and certain coverage and history rules are met. Except for approved double cropping, any crop planted after a second crop on the same field that year is not eligible for this insurance or noninsured assistance.