As farmers prepare for the 2026 crop year, they have many choices to make. While currently facing tight or negative margins, how can one maximize profitability while making crop insurance more affordable for 2026?
The Enhanced Coverage Option (ECO) and the Supplemental Coverage Option (SCO) endorsements offer additional ways to protect your income. They also help you manage yield or revenue risk.
These products work with your current crop insurance. They add extra coverage to help reduce losses that might not trigger a payout from your standard insurance. For example, a common coverage in eastern Iowa is 80% Revenue Protection. That means the deductible of 20% must be met before you get a claim payment. ECO lowers that deductible to only 5% and has 95% coverage….the highest you can buy!
What Are ECO and SCO?
Both are area-based insurance options. Instead of focusing only on your farm’s performance, they respond to how the entire county performs. So it is important that your farm yields trend with the county yields.
Are they affordable? For 2026 ECO and SCO have an 80% premium subsidy….80%! Now, how do they work?
Enhanced Coverage Option (ECO)
How ECO Works
ECO triggers when your county’s revenue or yield falls below 95 or 90%. It covers losses from 86% to the coverage level you select, which can be up to 95%.
What Makes ECO Valuable in 2026?
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Coverage from 95-86% of expected county revenue or yield
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Do not have to have MPCI loss to qualify for ECO claim
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Premium subsidy of 80%; the government helps pay your premium
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10:1 Revenue to premium ratio. Up to $95/acre corn revenue coverage
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Protects against smaller losses that don’t trigger traditional insurance but still impact profitability
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No farm program conflicts—It doesn’t affect your ARC or PLC choices
Supplemental Coverage Option (SCO)
How SCO Works
SCO triggers when your county’s revenue or yield falls below 86%. This makes it especially useful when widespread events like drought, flooding, or disease pressure impact your entire region.
Here’s how it protects you: If you have 80% individual coverage, SCO provides 6% more coverage for your farm. (86-80%)
What’s New for 2026?
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Premium subsidy increased to 80%—the government pays 80% of your premium
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Can now be used with ARC-County programs— it is more flexibility with farm programs
Important Rules for Both Products
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Must elect ECO/SCO endorsement to crop insurance policy by the March 15, 2026
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ECO and SCO automatically match your insurance type (revenue or yield)
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Cannot be combined with certain other products like Margin Protection or Area Risk Protection Insurance
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Can choose ECO, SCO or both.
Don’t wait until sales closing deadlines are here. Let’s review your coverage options together and make sure your farm is protected for 2026.