Quick Answer: What Is Changing for 2027 Crop Insurance? Starting in 2027, the Supplemental Coverage Option (SCO) maximum coverage level increases from 86% to 90%. While SCO premiums may increase slightly due to the expanded coverage band, the 80% federal premium subsidy remains in place, providing cost-effective county-level risk protection.

Supplemental Coverage Option (SCO) Changes for 2027

SCO's coverage band is scheduled to widen in 2027, building on recent subsidy increases. Here is what is changing and how to evaluate your options before the next sign-up window:

  • Coverage Ceiling Rises: The maximum coverage level for SCO increases from 86% to 90%. This widens the county-level protection SCO layers on top of your individual farm policy.
  • Alignment with ECO: The 90% ceiling brings SCO's top end in line with the lower Margin Protection or Enhanced Coverage Option (ECO) band.
  • Subsidy Rate Remains Fixed: The premium subsidy on SCO stays at 80%. This is not a new subsidy increase, but an increase in how much total coverage that 80% subsidy applies to.

How 2027 Premium Costs Are Impacted

Combining a static subsidy rate with a wider coverage band means the out-of-pocket SCO premium will likely cost slightly more in 2027 than in 2026. A larger potential payout naturally comes with a higher base premium.

However, because 80% of that premium remains federally subsidized, the added protection remains significantly cheaper than under historical pre-2026 subsidy structures.

2027 Coverage Comparison: SCO, ECO, and MCO

Program2027 Coverage BandPrimary AdvantageARC/PLC Restrictions
SCOIndividual Policy Level to 90%High 80% subsidy rate protecting shallow county-level lossesNone; available regardless of ARC or PLC election
ECO90% to 95%Top-tier county coverage band; lowers base ECO premiums for 2027None; can be stacked directly with SCO

Key Strategy Considerations for Producers

  • Stacking Protections: ECO can be stacked seamlessly on top of SCO.
  • Cost-Effectiveness: University of Illinois farm economists note that the highest available ECO band tends to be the most cost-effective piece for corn and soybean growers, as smaller county-wide losses occur more frequently than widespread disasters.
  • Evaluating Farm vs. County Yields: Whether the wider SCO band is worth the modestly higher premium depends on how closely your farm's individual yields track county averages.

Next Steps Before the Closing Date

Talk with your crop insurance agent well before the sales closing date. Once official 2027 rates are published, run a county-level payment calculator to analyze how the expanded SCO band would have paid out in past crop years compared to previous rules.

Disclaimer: This article is for general informational purposes. Some 2027 figures and program deadlines were not finalized at the time of writing and reflect the best available guidance. Confirm final numbers with your crop insurance agent or the USDA Risk Management Agency (RMA) before making coverage decisions.