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.
El Niño Could Stave Off Drought Conditions in 2023, but be Prepared for Severe WeatherMarch 15, 2023
Cheap Hay Proves More Expensive Long-TermMarch 15, 2023
Beef Industry Reaction to USDA Label Proposal a Mixed BagMarch 15, 2023
400 Farm Groups Advocate for Protecting and Enhancing Crop Insurance in the 2023 Farm Bill BudgetMarch 16, 2023
President’s Proposed FY2024 Budget Confirms Crop Insurance IndispensableMarch 16, 2023