, Farm Journal Intern
Farmers who haven't had the chance to get their corn in the ground have two options at this point, says Gary Schnitkey, of the Department of Agricultural and Consumer Economics for the University of Illinois.
The alternatives to planting corn:
- Plant soybeans. The expected yields likely haven't been reduced as much as corn, he says.
- Take a prevented planting payment. Producers can do this if they have taken a CRC, RA, IP or APH policy. In most cases, Schnitkey says, the prevented planting payment for corn is 60% of the potential yield. Farmers should consult with their insurance agents because there are many variables, he says.
If the farmer can take a corn prevented planting payment, it probably is more economical to take the payment. If the payment would be based on soybeans, it's likely more profitable to plant soybeans.
To consult a tool to evaluate the two options and to read more: Evaluate Economic Alternatives For Late Planting
You can e-mail Rachel Duff at email@example.com.