Extend Revenue Coverage With Enhanced, Supplemental Coverage Options

Available for the first time in 2021, the Enhanced Coverage Option (ECO) provides farmers a way to extend crop revenue protection (RP) beyond the 86% covered by the Supplemental Coverage Option (SCO). It’s available at 90% or 95% coverage levels for an additional premium, and adding ECO provides a higher revenue guarantee based on county revenue rather than the farm revenues used as the baseline for other RP policies. The two additional coverage options can be used together to provide seamless coverage up to 95%, though SCO is only available with a Price Loss Coverage (PLC) policy with commodity title payments while ECO can be added to an Agricultural Risk Coverage (ARC) policy. Economists say over time, ECO payments will exceed premiums in the long term, but ECO remains a fairly high-cost option. Get more details about the new ECO revenue protection option for 2021.