Home > News > SCO and ECO: Two Emerging Supplemental Coverage Options for Added Peace of Mind

SCO and ECO: Two Emerging Supplemental Coverage Options for Added Peace of Mind

Posted August 15, 2022
in Top Ag News

In a recent Farmdoc daily weekly economics study, researchers did a deeper dive into the benefits of two emerging crop insurance endorsements: Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO).

First introduced in the 2014 Farm Bill, producers had access to these coverage options to expand their existing individual coverage. An underlying individual yield protection (YP) or revenue protection (RP, RP-HPE) policy is required. SCO has an 86% trigger while ECO provides 90% and 95% coverage.

Motivations and benefits for using SCO and ECO vary by region, so it’s important to review which is right for your operation. Acreage insured with supplemental area plans has trended upward since 2018, reaching nearly 18 million acres last year.

Read more on SCO and ECO benefits and usage here.

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