CENTRAL ILLINOIS (WCIA) — University of Illinois ag economist Gary Schnitkey is recommending farmers keep planting and not think twice about taking a prevented planting payment from crop insurance.
“June 5 is the deadline for most of Illinois except the extreme southern counties and that is May 31,” Schnitkey said. “After that date farmers can take a prevent plant payment and they are eligible for those again after that June 5th, May 31st date. The challenge this year, if you will is the markets going to be giving a pretty good incentive to plant corn even after that date. Corn prices right now are well above the projected price, if you are looking at what’s likely to be paid at harvest is above the projected price and that will make planting look very attractive, even after that final plant date. However, if you are doing it after that final plant date you are giving up a known prevent plant payment and taking some risks there and your crop insurance guarantee will be going down one percent every day afterward.”
Are we looking at a time when yields will be going down that that being adjusting on the fly in some of those economics?
“Yeah, if you are planting after June 5, your expected yield will be lower than planting end of April or mid-April,” Schnitkey said. “And we took that into consideration when we did our economics and we had tools that build in that. Even given that yield decline we’ll still be looking at profitability for corn planting. The other negative about planting corn after the final plant date is that yield will go into the calculation of APH or approved yield for that year and that would be lower, and would lower the APH moving forward.”
That’s our report from the farm. I’m Stu Ellis with WCIA-3, your local news leader.