The USDA Risk Management Agency (RMA) introduced a margin coverage option endorsement for corn, cotton, grain sorghum, rice, soybeans and spring wheat in select states for 2026 and succeeding years. The MCO crop insurance helps protect growers with area-based coverage against an unexpected decrease in operating margin (revenue minus input costs) caused by reduced county yields, reduced commodity prices, increased prices of certain inputs or any combination of these perils.

MCO provides a band of coverage from 86% or 90% to 90% or 95% of the expected crop value. MCO must be purchased as an endorsement to a Yield Protection (YP), Revenue Protection (RP), Revenue Protection with the Harvest Price Exclusion (RP-HPE), or Actual Production History (APH).

MCO begins to pay indemnities (triggers) when the area margin falls below 90 or 95 percent of the expected margin, depending on which MCO trigger you select. The trigger margin is calculated by subtracting the deductible of 5 or 10 percent of the expected area revenue from the expected area margin. Indemnities would be paid when final county yields are available. That would be in the spring of the following year, according to the USDA.

The initial pilot of the program will include counties in the following states:

  • For corn and soybeans ⏤ Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin.
  • For cotton and grain sorghum ⏤ Kansas, Oklahoma and Texas.
  • For rice ⏤ Arkansas, California, Louisiana, Mississippi, Missouri and Texas.
  • For spring wheat ⏤ Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota and Washington.

The sales closing date for corn, cotton, grain sorghum, soybeans and spring wheat is September 30. The closing date for rice will vary by state and county.

Read more about the Margin Coverage Option for row crops here.

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