Illinois data shows prevent plant was a good decision in 2019
An analysis of Illinois farm data shows taking prevent plant in 2019 was a good decision for most farmers.
University of Illinois ag economist Gary Schnitkey tells Brownfield they gathered their data from Illinois grain farms with more than 500 acres enrolled in Illinois Farm Business Farm Management.
“Those farms that took prevent plant probably did the best economic decision that they could have. Those prevent plant decisions are hard, yet it was the right decision.”
But Schnitkey says the more prevent plant acres that were taken, the lower farm income was, so planting the crop in good conditions is still the best scenario.
“There is a lot of discussion about prevent plant payments on crop insurance and whether it overcompensates people who take prevent plant. Our numbers would say that is not the case.”
He says on average net farm income declined by 51% from 2018 to 2019.
Looking forward, Schnitkey says saving cash flow in high prevent plant years will be critical.