Farmers with fields negatively impacted flooding have some big decisions to make.

"Although at this point the extent of the damage to crops is still being determined, some fields have been compromised and yield loss will likely occur," said Kim Dillivan, SDSU Extension Crops Business Management Field Specialist. "Farmers are asking, do they replant the field with a different crop or do nothing?"

Additionally, Dillivan pointed out that they are considering the ramifications those decisions have on crop insurance.

"In South Dakota, crop insurance protected $5.6 billion in liability on growing crops in 2013 and 17 million acres were insured - which accounts for about 97 percent of acres planted to major crops," Dillivan said, of the important risk management tool utilized by producers in many parts of the U.S. and South Dakota.

Crop Insurance 101

Multiple Peril Crop Insurance (MPCI) covers crop yield loss caused by different types of natural disasters such as drought, freeze, and flooding. Newer insurance options combine price and yield protection to protect against loss of revenue.

MPCI, under the Federal Crop Insurance Program (FCIP), is one of two types of crop insurance available to farmers in the U.S. Crop hail insurance policies do not fall under FCIP and must be purchased separately. Like hail insurance, MPCI is provided by private companies, however, MPCI policies offered by these private insurers are supervised and regulated by USDA's Risk Management Agency.

"For producers who have insured crops that have been affected by flooding, they should first contact their insurance provider," Dillivan said.

Crop agents must be notified within 72 hours following an eligible loss.

At this time of year, several options exist for insured producers who have crop losses caused by natural disasters such as flooding. These are:

  • Leave damaged crop as is and receive insurance indemnity.
  • Replant the same crop.
  • Plant a different crop.

"Given that it is early July, corn replanting, or planting corn as a second crop is unlikely. However, there may still be time to replant soybeans, or to plant soybeans as a second crop," Dillivan said.