1. ADM CROP RISK SERVICES 2013 PREVENT PLANT

2. Definition of Prevent Plant Failure to plant the insured crop by the final plant date designated in the special provision for the insured crop in the county, or within any applicable late plant period, due to an insured cause of loss that is general to the surrounding area and that prevents other producers from planting acreage with similar land characteristics. Note: Failure to plant because of uninsured causes such as lack of proper equipment, or labor to plant acreage, or use of a particular production method is not considered prevent planting. Note: Failure to plant when other producers in area were planting MAY result in the denial of the prevent plant claim (Case by case situation).

3. Eligible Prevent Plant Crops PP coverage is applicable to the following crops: Barley, canola/rapeseed, corn, cotton, ELS cotton, dry beans, flax, grain sorghum, green peas, hybrid seed corn, hybrid grain sorghum, millet, mustard, oats, onions, peanuts, processing sweet corn, processing beans, popcorn, central and southern potatoes, northern potatoes, rice, rye, safflowers, silage sorghum, soybeans, sugar beets, sunflowers, and wheat.

4. Eligible Acres Acreage Eligible for Prevent Plant payment must be: 1. Insurable 2. Be Available for Planting *means land is free of trees, rocks, or other factors that would prevent proper and timely preparation of the seedbed for planting. *Not available includes -CRP acreage -Perennial crop acreage (trees, vines) -Acreage with pasture or forage in place (12 month prior rule) -Acreage with pond vegetation (cattails etc.) -Any other conditions that the AIP determines to prevent proper and timely planting. FCIC states that it is improper to interpret the term “acreage unavailable for planting” solely based on the acreage qualifying for PP payments for a set number of years. *AIP must independently determine eligible acreage and PP eligibility based on each policyholder’s individual circumstance. (PP handbook pg. 128-129)

5. Eligible Acres 3. Not be Uninsurable: A. Acreage that has not been planted, harvested, or insured in any one of the three previous years. B. On which the only crop planted, harvested in the three previous years is a cover, pasture, or forage crop.(unless the forage crop is part of an established crop rotation). **Remember-Each Case need independent determination 4. The Maximum number of acres for PP coverage for all crops CANNOT exceed the number of CROPLAND acres in the insured’s farming operation for the crop year. *Unless the insured provides proof of double cropping history. 5. PP acres subsequently planted to a second crop are not used to determine eligible acres unless double cropping requirements are met.

6. Eligible Acres Prevent Plant Coverage will be provided for: Drought or failure of the irrigated water supply only if on the Final Plant Date (or within the LP if the insured intended to plant the crop within the LP period. - For non-irrigated acreage, the area that is prevented from being planted has insufficient soil moisture for germination of seed due to prolonged periods of dry weather (using information who’s business it is to record / collect weather data-example National Weather Service) - For non- irrigated acreage, the area would be considered prevent from planting due to prolonged drought when the insured can provide verifiable documents that is acceptable to the AIP. 1. Documents that other producers with acreage with similar characteristics are also prevented from planting. 2. Data showing prolonged precipitation drought for the area. 3. Written opinion from agricultural experts 4. Information showing insufficient moisture conditions existed on the Final Plant Date or within the Late Plant Period.

7. Eligible Acres Prevent Plant Coverage will be provided for: Irrigated acreage if due to an insurable cause. -The insured is unable to prepare the land for irrigation using the insured’s established irrigated method. -Or the irrigation equipment or facilities fail or break down, provided the insured made all reasonable efforts to restore the equipment. (cost will not be a consideration) -Or if there is failure of the irrigated water supply (i.e.. there is not reasonable expectation of having adequate water supply to carry out an irrigated practice). The Inability to plant due to a large amount of silt, sand, or other debris left on land due to flooding that occurred during the PP insurance period and cannot be removed to the extent needed to plant the crop by the final plant date for the crop year.

8. Eligible Acres-Clarification Acreage NOT considered available for planting includes (but not limited to the following): 1. Acres enrolled in CRP. 2. Perennial crop acres (i.e. cover crop, pasture, trees, etc. still on the acreage or not removed in time for planting). *Cover Crop –Pasture / Forage that are seeded, transplanted, or volunteer more than 12 months prior to PP crop Final Plant Date. *Insured can demonstrate his intent to destroy the established stand by: chemical kill, plow down. 3. Acreage that in a normal weather patterns is normally wet throughout the final and late plant period, and would be only available for planting in abnormally dry conditions. Because of the normally wet conditions from year to year on such acreage, this acreage is likely to contain cattails, and perennial grasses and weeds. *Such acreage would not be available to plant a spring crop even though such acreage may have been tilled, planted, and or insured the previous fall. REMEMBER-case needs INDEPENDENT determination

9. Notice Requirements Insured must notify the Insurance Provider is they are prevented form planting an insured crop with PP coverage: Within 72 hours after the Final Plant Date. Or -when the insured determines he or she will be unable to plant within any Late Plant Period. Note: Insured is not required to plant the insured crop during the late plant period even if they could plant a crop during this time. Note: Failure to provide timely Notice of PP (above) will be considered solely due to uninsured Cause of loss. Unless: 1. AIP determines they can still accurately adjust the loss. 2. Notice was submitted prior to 60 days after CD for EIOP. 3. PP acres were timely submitted on the Acreage Report If either 1 or 3 are not met--No PP coverage is provided. No premium will be owed, and No PP payment will be paid.

10. Notice Requirements Notice of Loss Requirements for PP acreage -Allows the Insurance Provider the opportunity: To inspect the PP acreage much earlier To verify the Cause of Loss existed Improve program integrity

11. Acreage Reporting Requirements The Insured must report all acres on the acreage report correctly. *PLANTED *PREVENT PLANTED Revised acreage reports CAN NOT be accepted to add prevent plant after Acreage Reporting Date.

12. Determining The Eligibility For Reported Prevent Plant Acres 1. Determined whole field acres per FSA measurement 2. Partial fields- Always NEED TO BE DETERMINED: GPS / WHEELED--verify on Insurance Schedule / FSA maps. 3. Any PP acreage within a field that contains planted acreage will be considered to be acreage of the same crop, type, and practice that is planted in the field. 4. If multiple crops are planted in a field, the insured may select which crop will be used for the PP acreage. -The PP acreage may be considered to be acreage of a crop / type / and practice OTHER than which is in the field only if insured divided the field in that way in one of the past FOUR YEARS.

13. 1 Field Example 1 st Field the PP can be listed as Corn or Beans PP ccco 1 Corn 55.2 A Beans 34.0 A 6.2 A PP 13.5 A PP Corn 18.3 A Beans 12.5 A Forage 20.0 A 18.0 PP Acres Field 1 2 nd Field does the insured qualify for a PP payment? 108.9 A in Field Bean field 34.0 + 6.2 A = 40.2 15.4 % of field PP –no 20 / 20 rule Corn field 55.2 + 13.5 A= 68.2 19.8 % of field PP –no 20 / 20 rule Combine 55.2 + 19.7 A= 74.9 26.3 %of field PP – Meets RULE

14. 2 Field Prevent Plant Example Is there a PP payment? ff Fence line 50 A corn 42 A SB 13 A- PP 8.0 A-PP Beans (N0) 50.0 A x.20 =10.0 Needed Corn (Yes) 63.0 A x.20 = 13.0 A Needed

15. 2 Field Prevent Plant Examples I 15 A PP 30 A CORN 35 A SB 65 A CORN Is there a PP payment? All in the Same Section / Unit 145.0 Acres Corn PP? *No- 15 A doesn’t meet 20/20 15/110 A= 13.6 % of unit Beans PP? *Yes-15 A does meet 20/20 15/50 A= 30.0 % of unit

16. Eligibility Prevent Plant The maximum eligible number of acres certified for APH purposes, or insured acres reported for insurance for the crop in any one of the four most recent crop years. Any eligible acreage will be reduced by subtracting the number of acres of the crop planted.

17. Eligibility- Changes Due to ADDED LAND / LOST LAND Increases / Decreased of the maximum eligibility PP acres for a crop due to the insured changing his or her cropland acres for the current crop year. It is determined separately for each crop and practice (IRR / NI) by determining the Ratio of change and multiplying this ratio by the highest number of acres reported or insured in one of the last 4 years.

18. Intended Acreage Report When in the 4 most recent years- an insured did not plant any crops in the county for which PP insurance was available or has not received a PP insurance guarantee. *The intended Acreage Report must be submitted by sales closing date. -Acres can not exceed Cropland Acres -Intended Acreage Report cannot be altered -For example: If the intended acreage report indicates 1000 acres of corn. The insured cannot later 500 acres of corn PP and 500 acres of soybean PP. The PP must remain with the corn.

19. Acreage which in NOT eligible for Prevent Plant Coverage 1. That does not constitute at least 20 acres or 20% of the unit (which ever is less). 2. If actuarial documents do not provide information needed to determine a premium rate, unless a written agreement designates premium rates. 3. Acreage is used for conservation purposes, or intended to be left unplanted under any program administered by the USDA / other government agency. 4. On which the insured crop is prevented from being planted, if the insured or any other person receives a PP payment for any crop on the same acreage in the same crop year (excluding share agreements)- unless all the criteria for double cropping is met. 5. On which in insured crop is prevented from planting, if: A. Any crop is planted within or prior to the LPP. -exclusion- If double cropping requirements are met -exclusion- crop planted is a double crop -exclusion- no benefits from other USDA program was derived B. Any volunteer or cover crop is hayed, grazed, or harvested within or prior to the LPP

20. Acreage which in NOT Eligible for Prevent Plant Coverage 6. For which planting history or conservation plans indicate that the acreage would have remained fallow for crop purposes or on which any pasture or forage crop is in place. (12 month in place rule) 7. That exceeds the number of acres eligible for PP payments. 8. That exceeds the number of acres physically available for planting 9. For which the insured cannot provide proof that he/she had inputs available to plant the crop. 10. Based on irrigated practice production guarantee or amount of insurance unless adequate irrigation facilities were in place to carry out an irrigated practice on the acreage prior to the insured cause of loss that prevented the insured from planting. 11. Of a crop type or variety that the insured did not plant or has not received a PP insurance guarantee in at least ONE of the LAST FOUR YEARS.

21. Acreage which is NOT eligible for Prevent Plant Coverage 12. Wheat that is short-rated (less than a full crop year coverage), is not eligible for a PP payment, nor is it eligible for a PP payment from another crop unless it qualifies under the Double Cropping provisions of the PP section of the policy. 13. If a cause of loss has occurred that may prevent planting at the time: A. The Insured leased the acreage (except acreage leased the previous year / carried over). B. The insured bought the acreage. C. The acreage is released from a USDA program which prohibits harvesting a crop. D. The insured requested a written agreement to insure the acreage. E. The insured acquired the acreage through means other than lease or purchase (i.e. Inherited). *NOTE- Acreage CAN NOT have a pre-existing condition to qualify for a prevent plant payment.

22. Prevent Plant Levels of Insurance Default Prevent Plant Guarantees for PP 60% Coarse Grain, Dry Beans, Dry Peas, Small Grains, Sunflowers, Canola, and Safflower 50% Cotton 45% Sugar Beets 40%Green Peas, Process Beans, Process Sweet Corn 25% Potatoes *Additional Levels of PP coverage No additional coverage for CAT policy 5%from the Base Guarantee listed above 10% from the Base Guarantee listed above *Must be purchased additional levels by the Sales Closing Date *Insured CANNOT increase his / her PP coverage levels if- A cause of loss which could prevent planting a crop occurred during the Insurance period and prior to the insured’s request.

23. PREVENT PLANT AVAILABLE FOR CAT POLICIES? Prevent Plant IS available for Cat coverage!!! No written agreement No additional level coverage available

27. Prevent Plant as It relates to Double-Cropping History A full PP payment for a first crop is limited to the number of acres that the insured can demonstrate he/ she has double-cropped and that has historically been double-cropped. If-First insured crop was PP and the second crop is planted on the same acreage in the same year- regardless of whether or not the second crop is insured or sustains an insurable loss. If-First insured crop was PP and the subsequent insured crop is prevented from being planted on the same acreage in the same crop year (can’t call the subsequent PP crop a second crop because it was not a planted crop). If-First insured crop is planted and the subsequent insured crop is prevented from being planted on the same acreage in the same crop year (can’t call the subsequent PP crop a second crop since it is not a planted crop If –First planted crop for the crop year is uninsured, but insurance is available for the uninsured crop, and a subsequent insured crop is prevented from being planted on the same acreage in the same crop year (the PP crop would be the first insured crop). And All Double Cropping Criteria is met (next Page)

28. Double-Cropping Criteria 1. It is a practice that is generally recognized by an agricultural experts in the area to plant the insured crop for harvest following the harvest of the first crop. 2. Additional coverage insurance offered under the authority of the Act is available in the county for two or more crops that are double cropped 3. The insured provides records proving double-crop history on the acreage. *His / her own acreage and production records, that show the insured has double cropped acreage in at least 2 of the last 4 crop years. Example- If the insured has double cropped history of 100 acres of wheat + beans, and he acquires an additional 100 acres. The insured can apply the 100 acres of double cropping history to any of the 200 acres as long as he doesn’t exceed the 100 acre history. *Another person’s acreage and production records -That show the exact same acreage in the county on which the PP claim is being made, and for the current crop year-was double cropped in at least 2 of the last 4 crop years. Example- If a neighbor has double cropped 100 acres of wheat and soybeans in the county, and the insured acquired the neighbor’s 100 acres of double crop acres, and an additional 100 acres in the county. The insured can only apply the neighbor’s history of DC to the same 100 acres that the neighbor double cropped. Prevent Plant as It relates to Double-Cropping History

29. Acceptable Double-Cropping Records -Crop Insurance records that show both production and acres (APH / Claim / Appraisals / Bin Measurements / Etc.). -Elevator Ledger (i.e.. Settlement sheets showing amount of production from the double-cropped acreage). -FSA documents, FSA maps Double-Cropping history is specified by county in which the Prevent Plant claim is being made.

31. Flow chart-PP Delete acres Report to a different crop No yes Delete from acreage report Reported to a different crop/practice/type/than planted in the field Meets 20/20 rule for total insurable acres in the field yes 2 crop/practice/type history in the past 4 years yes Does the reported pp acres meet rotational requirements yes Meets 20/20 rule for total planted/pp acres in the unit yes Are these acres available for the PP crop yespayable Are the PP acres insurable yes How was PP reported Reported to the same crop/practice/type as planted in the field or nothing planted in the field yes Does reported PP acres meet rotation requirements yes Meets 20/20 rule for total insurable planted/PP acres in the unit yes Are there eligible acres for the PP crop yes payable 1. Not plant a second crop –or plant a cover crop and do not hay - graze it until after Nov. 1: Eligible for 100% PP payment. 2.Plant a second crop for Harvest (after the Late Plant period for the 1 st crop) : Eligible for 35% of the PP payment. 3.Plant a second crop for Harvest (prior to the end of the Late Plant Period for the 1 st crop): Not Eligible for a PP payment- the PP acres will need to be removed from the Acreage Report. Insured’s Options Payable using crop with the nearest liability No Delete from the Acreage Report-No payment Exception may apply exception Delete from the Acreage Report Payable using the nearest crops liability Delete from the Acreage Report – No payment Exception may apply Delete from the Acreage Report No exceptions Revise the PP acres to the crop/practi ce/type planted in the field