US Corn Prevent Plant

Gro’s US Corn Prevent Plant Forecast Model estimates the number of acres prevented from being planted at the county and national levels in advance of the USDA FSA release. Significant prevent plant area can impact seed sales, input use, and ultimately production. It also drives insurance claims. Even when adverse environmental conditions merely delay planting, crop yields can decline and fewer inputs may be used during the growing season.

Customers Use the Model to

• Estimate how many corn and soybean acres in the United States will be prevented from being planted due to excess precipitation or drought conditions
• Track supplies in the US, which can have potential price-moving implications globally
• Forecast demand for agricultural inputs and insurance claims
• Assess the earnings impact for input companies

Why It Matters

Prevent plant is an insurance contract that nearly all US farmers have. If they are unable due to weather to plant corn or soybeans by a certain date of the year, they can take an insurance payout and not plant anything in their fields. Farmers therefore need to decide by a certain date, which varies by state, whether to plant or not plant. If there is extreme weather, a large number of farmers will take the payout and must report what they planted and what was prevented from being planted. 

A decrease in supply for the US market has price-moving implications globally. For example, in 2019, the US Midwest experienced record flooding, which had a major impact on prices, planting decisions, and earnings, especially for seed and fertilizer companies.

Related Resources 

US Crop Budget App 

Gro Drought Index

US Soy Prevent Plant Model