You must exceed the 20/20 rule for MPCI replant coverage to be granted. The rule states that the lesser of more than 20 acres or 20% of your unit needs to be replanted before coverage is provided. The corn indemnity payment on replanted acres equals the actual cost to replant up to a limit of 8 bushels. If the projected price of corn was $3.50, the maximum replant coverage would be $3.50 x 8 bushels = $24 per acre.
Crop Hail Replant Coverage depends on the company and the type of coverage you have selected.
Some companies pay the hail loss and you decide whether to replant. The remaining insurance coverage will be transferred to the replanted crop. Additional coverage can be purchased.
Other companies have to approve replant. Then you have a choice.
Option A: Replant crop and company will pay for your actual replant costs, not to exceed 20% of the limit of insurance per acre. Remaining limit will transfer to replanted crop. If you don’t replant, your loss is paid at 20% the limit of insurance.
Option B: Pay the actual loss sustained. No coverage will be transferred to the new crop. Additional coverage can be purchased.
If you have production plan hail, you don’t have coverage for replant.
Replant Supplement Coverage
Stand alone replant coverage provides coverage on the first acre you replant. Plus, you can select up to a certain amount of coverage, potentially $50-80 per acre. The indemnity payment will be the lesser of the actual cost of replant or the coverage limit elected on the policy.
Selected Coverage per Acre: $50
Replanted Acres: 10
Actual Cost of Replant: $55
Indemnity Payment: $50 coverage limit x 10 acres = $500
You must insure all acres per crop per county. Therefore, you would need to evaluate if this coverage makes sense for your operation.