No, Congress gave the option but not the requirement for the Farm Service Agency to increase the prevented plant guarantee to 90%. However, on September 9, 2019- Farm Service Agency Director Richard Fordyce gave FSA’s interpretation of the law and how they plant to implement it.
Instead of increasing the insurance prevent plant guarantee to 90%- all producers with flooding or excess moisture-related prevented planting insurance claims in 2019 will receive a supplemental disaster payment equal to 10% of the prevented plant indemnity (the portion that comes back to the producer in the instance of a loss). If the producer has the harvest price option on their underlying crop insurance policy, he or she would be eligible for an additional 5% on their indemnity. So a producer that receives a $300 indemnity on prevent plant acres would be eligible to receive an additional $30 for a basic crop insurance policy or $45 if he or she has the harvest price option.
Updated: 9/13/2019