{ "id": "R46180", "type": "CRS Report", "typeId": "REPORTS", "number": "R46180", "active": true, "source": "EveryCRSReport.com", "versions": [ { "source": "EveryCRSReport.com", "id": 613578, "date": "2020-01-15", "retrieved": "2020-01-15T23:06:11.119587", "title": "Federal Crop Insurance: Record Prevent Plant (PPL) Acres and Payments in 2019", "summary": "U.S. agricultural production got off to a late start in 2019 due to prolonged cool, wet springtime conditions throughout the major growing regions, particularly in states across the northern plains and eastern Corn Belt. Saturated soils prevented many farmers from planting their intended crops\u2014such acres are referred to as \u201cprevent plant (PPL)\u201d acres. As of November 1, 2019, the U.S. Department of Agriculture (USDA) reported that farmers were unable to plant a record 19.6 million acres in 2019\u2014including 11.4 million acres of corn and 4.5 million acres of soybeans. The previous record for total PPL acres was set in 2011, when USDA reported 10.2 million acres of PPL. \nUSDA\u2019s Risk Management Agency (RMA) reported on November 15, 2019, that 2019 PPL indemnity payments were over $4.2 billion, with $2.6 billion (60.6%) for corn PPL acres and $1.1 billion (25%) for soybean PPL acres. The 2019 average national PPL payment rate for all crops was $224.04 per acre. Payment rates varied by crop and ranged from a low of $50 per acre for millet to a high of $1,432 per acre for dark air cured tobacco.\nThe unusually wet spring conditions that produced the record PPL acres in 2019 were heavily concentrated in Corn Belt states but were also reported in significant numbers in Arkansas, Texas, Mississippi, Louisiana, North Carolina, Tennessee, New York, and Oklahoma. However, South Dakota\u2019s 3.9 million acres of PPL were more than double second-place Ohio\u2019s 1.4 million of PPL acres. South Dakota\u2019s PPL acres accounted for over 20% of the national total in 2019, while its PPL indemnity payments of over $925 million accounted for 21.9% of national PPL indemnity payments. During the previous 19-year period from 2000 to 2018, national PPL averaged 4.1 million acres annually with average indemnities of $680 million per year. Of these national totals, South Dakota accounted for an average of 10% of PPL acres (406 million acres) and 11.2% of PPL indemnities ($76.4 million).\nFarmers that were unable to plant a crop during the spring of 2019 due to natural causes were potentially eligible for multiple payments under federal farm programs. First, federal crop insurance provides PPL coverage under a standard policy that covers pre-planting cost and potential revenue loss. Second, the FY2019 supplemental authorized disaster assistance payments for PPL (referred to as \u201ctop up\u201d) in addition to crop insurance indemnities. Third, the Administration\u2019s 2019 MFP payments, although based on planted acres, also included payments for eligible cover crops planted on PPL acres.\nIn addition to the unplanted acres, a sizeable portion of the U.S. corn and soybean crops was planted later than usual. Such late planting meant that initial crop development would be behind normal across much of the major growing regions and that eventual yields would depend on beneficial weather extending late into the fall to achieve full crop maturity. Widespread wet conditions continued into the fall, especially in the northern plains and western Corn Belt. Ultimately, much of the corn crop was harvested under wet conditions with high moisture content that required drying. Due to the high costs of propane for drying, many farmers chose to leave their corn in the field until more beneficial market conditions emerged. As of December 16, 2019, USDA estimated that 8% (or 7.2 million acres) of the U.S. corn crop had yet to be harvested, adding further to the uncertainty of yields and harvested acreage for the 2019 corn crop.\nSaturated soil conditions heading into the winter months suggests a continuation of wet conditions into the 2020 planting season and the potential for a repeat of planting difficulties in the year ahead. Should wet conditions persist in 2020 and create a situation where farmers are again confronted with delayed or prevented planting, many producers may also bump up against a limit on the continued use of crop insurance PPL. Another looming concern for market watchers and policymakers is that, should wet conditions persist in 2020, they could signal the potential for continued dependence on federal programs to sustain farm incomes in 2020.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R46180", "sha1": "5ab8cbed776972e75daaa50be04b6d3e91e6e328", "filename": "files/20200115_R46180_5ab8cbed776972e75daaa50be04b6d3e91e6e328.html", "images": { "/products/Getimages/?directory=R/html/R46180_files&id=/5.png": "files/20200115_R46180_images_8661b3f02194bbe362a6d03d2ea66c3855477ac8.png", "/products/Getimages/?directory=R/html/R46180_files&id=/2.png": "files/20200115_R46180_images_342950e9f076ba7994636f2592afcb5d6f25395f.png", "/products/Getimages/?directory=R/html/R46180_files&id=/3.png": "files/20200115_R46180_images_35a039126f4f68b8de590327344fe6cfbc530723.png", "/products/Getimages/?directory=R/html/R46180_files&id=/1.png": "files/20200115_R46180_images_79e3af645ea871e377c094d4f042e980bed64841.png", "/products/Getimages/?directory=R/html/R46180_files&id=/0.png": "files/20200115_R46180_images_0de38404b908c1357408e93cb09feea4edb51bc4.png", "/products/Getimages/?directory=R/html/R46180_files&id=/4.png": "files/20200115_R46180_images_657a7a30544147de423472d57732781d0fb9d7ee.png" } }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R46180", "sha1": "8949d2d76b218af49578ca613a2b148cf8f06ddc", "filename": "files/20200115_R46180_8949d2d76b218af49578ca613a2b148cf8f06ddc.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4919, "name": "Farm Support" } ] } ], "topics": [ "Agricultural Policy" ] }