Supplemental Coverage Option (SCO) Insurance
What is the Supplemental Coverage Option (SCO) Insurance?
The Supplemental Coverage Option (SCO) insurance policy option is a county-level revenue-based or yield-based optional crop insurance endorsement that provides additional coverage for a portion of your underlying crop insurance policy deductible.
SCO Crop Insurance
SCO insurance can be elected only when a producer has purchased one of the following underlying plans of crop insurance:
- Yield Protection
- Revenue Protection
- Revenue Protection with the Harvest Price Exclusion
- or to the Actual Production History policy for crops that don’t have revenue protection available.
The Federal Government now pays 80% of the premium cost for SCO due to the OBBBA.
How Do I Buy SCO Crop Insurance?
Producers can choose SCO as an endorsement to the underlying policy. This choice must be made by the sales closing date for your underlying policy, and it needs to be with the same insurance company.
Contact your trusted ProAg agent today to discuss policy details and availability.
How Does SCO Insurance Work?
SCO follows the coverage of the underlying policy. If Yield Protection is chosen, then SCO covers yield loss. If Revenue Protection is chosen, then SCO covers revenue loss.
The amount of SCO coverage depends on the liability, coverage level and approved yield for the underlying policy. However, SCO differs from the underlying policy in how a loss payment is triggered. The underlying policy pays a loss on an individual basis and an indemnity is triggered when there is an individual loss in yield or revenue. SCO pays a loss on an area basis, and an indemnity is triggered when there is a county-level loss in yield or revenue.
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. OBBBA allowed the Supplemental Coverage Option (SCO) Endorsement to be purchased regardless of an insured’s Area Risk Coverage (ARC) election with the Farm Service Agency and increased the maximum coverage level from 86% to 90%. Beginning with the 2027 crop year, FCIC is incorporating the One Big Beautiful amendment into the SCO endorsement.
SCO crop insurance indemnity payments are determined by county average revenue or yield and are not affected by whether you receive a payment from your underlying crop insurance policy. It is possible to experience an individual loss but to not receive an SCO payment, or vice-versa.
The dollar amount of SCO coverage is based on the percent of crop value covered. SCO also allows producers to customize their amount of coverage with a coverage percentage. The coverage percentage is elected from a range of 50% to 100%, and the maximum amount of SCO coverage is multiplied by that percentage.
Example of Coverage and Indemnity Calculations
The following is an example of the supplemental protection and indemnity of SCO with the Revenue Protection underlying policy:
The producer farms 100 acres of corn with an approved yield of 173.0 bushels per acre. The expected area yield is 165.0 bushels per acre, the projected price of $4.60/bushel, and the expected area revenue is $759.00 per acre. The producer elects the 70% coverage level for the underlying Revenue Protection policy, which results in a liability for the underlying policy of $55,706 based on the projected price. The producer elects a coverage percentage of 100 for SCO.
At the end of the insurance period, FCIC releases a harvest price of $4,83/bu, a final area yield of 128.7 bushels/acre and a final area revenue for the county of $621.62 per acre. The liability of the underlying policy increases to $58,491.
Supplemental Protection Calculation:
- Calculate the supplemental coverage range
- 0.90 – 0.70 = 0.20 supplemental coverage range
- Calculate the Expected Crop Value
- $55,706 / 0.70 = $79,580.00 expected crop value
- Calculate the Supplemental Protection
- 0.20 X $79,580.00 X 1.00 = $15,916 supplemental protection
Supplemental Protection Calculation (for indemnity):
- Calculate the supplemental coverage range
- 0.90 – 0.70 = 0.20 supplemental coverage range
- Calculate the Expected Crop Value
- $58,491 / 0.70 = $83,559.00 expected crop value
- Calculate the Supplemental Protection
- 0.20 X $83,559.00 X 1.00 = $16,712 supplemental proection
Indemnity Calculation:
- Calculate the Payment Factor
- (0.90 – ($621.62 / (165 X $4.83))) / 0.20 = 0.600 payment factor
- Calculate the indemnity
- $16,712 X 0.600 – $10,027 indemnity
Where is SCO Available?
Supplemental Coverage Option (SCO) endorsement is available in select counties and states for certain crops. Additional crops or coverage areas will be added in subsequent years based on producer interest and data availability.
A map of SCO availability can be accessed through the Map Viewer tool on the RMA website at https://public-rma.fpac.usda.gov/apps/MapViewer/index.html
Alfalfa Seed, Barley, Canola, Cultivated Wild Rice, Dry Peas, Forage Production, Grapefruit, Grass Seed, Lemons, Mandarins/Tangerines, Mint, Oats, Onions, Oranges, Potatoes, Rye, Sugarcane, Tangelos and Wheat
Still Have Questions?
Contact your trusted ProAg agent to discuss policy details and availability.
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Pro Ag Management, Inc.* (collectively with its corporate affiliates, “ProAg®”) is a managing general agency representing several risk bearing insurance companies, including Producers Agriculture Insurance Company and U.S. Specialty Insurance Company and doing business as Pro Ag Insurance Services, Inc. in California, CA Entity License #0F34212. The insurance products described on this website may not be a complete list of all products offered and may not be offered in all states. The provided information does not amend, or otherwise affect, the terms and conditions of any insurance policy issued by ProAg or any of its subsidiaries; always refer to the policy provisions. Actual coverages will vary based on the terms and conditions of the policy issued.