For the 2026 U.S. crop year, SCO and ECO can add area-based protection above an individual farm policy, with an 80% premium subsidy for each. Whether the combination is worthwhile depends on the farmer-paid premium, the coverage bands available for that crop year, and how closely the farm’s losses track county results. A University of Illinois model found stronger downside protection in several McLean County, Illinois, scenarios using SCO and ECO, but its figures are not quotes or forecasts for other farms.
How SCO and ECO fit with an individual policy
Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO) are optional area-based endorsements layered over an eligible individual crop insurance policy. The underlying policy covers losses on the insured individual unit; SCO and ECO payments depend on an area result, generally the county average yield or revenue. As USDA’s Risk Management Agency (RMA) explains, an individual policy can pay when the area endorsement does not, or an area endorsement can pay when the individual policy does not.
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The area endorsement follows the type of underlying coverage: Yield Protection (YP) ECO covers yield outcomes, while Revenue Protection (RP) ECO covers revenue outcomes. Eligible underlying policies for ECO include YP, RP, RP with Harvest Price Exclusion, Actual Production History, and Yield Based Dollar Amount. ECO must be purchased from the same approved insurance provider as the underlying policy.
How the bands stack
RMA’s example for a 75% underlying policy with 95% ECO illustrates the layers: the underlying policy covers from its 75% level; SCO occupies the 90%–75% band; ECO occupies the 95%–90% band; and the 100%–95% band above ECO remains uncovered in that example. The exact bands depend on the crop year and endorsement configuration, so confirm the offer for the crop and county rather than assuming the illustration applies to every case.
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What changes for the 2026 crop year
For policies with sales closing dates on or after July 1, 2025, RMA’s MGR-25-006 implementation bulletin raised the premium subsidy for SCO from 65% to 80%; the same 80% support applies to ECO and specified similar area products. The subsidy pays a portion of the premium, not the full cost of coverage. A producer still pays the remaining premium, and the amount varies with crop, county, plan, prices, and—on revenue coverage—volatility.
For 2026, producers may purchase SCO regardless of whether they elected Agricultural Risk Coverage (ARC). RMA’s implementation guidance says ECO can provide access to the additional band up to 90% under the 2026 arrangement. This should not be confused with the later change to SCO’s maximum coverage level: RMA’s June 30, 2026, PM-26-036 bulletin says that change applies beginning in 2027 for crops with a June 30, 2026 contract change date, and in 2028 for crops with an earlier contract change date. Check the applicable crop-year endorsement and contract dates when comparing options across years.
Illustrative 2026 scenarios from McLean County, Illinois
A February 17, 2026, University of Illinois farmdoc daily analysis by Nick Paulson, Gary Schnitkey, Henrique Monaco, and Carl Zulauf modeled 42 RP/SCO/ECO combinations for corn and soybeans in McLean County. “Net benefit” below means expected indemnity less farmer-paid premium; “worst-5% net revenue” is the modeled net revenue in the worst 5% of simulated outcomes. Values are per acre.
| Crop and scenario | Farmer-paid premium | Net benefit | Worst-5% net revenue |
|---|---|---|---|
| Corn, RP-85 baseline | $14.59 | $3 | $809 |
| Corn, RP-80 with SCO and ECO-95 | $18 | $35 | $858 |
| Corn, RP-75 with SCO and ECO-95 | $15 | Just over $36 | $846 |
| Soybeans, RP-85 baseline | Nearly $7 | −$1 | $610 |
| Soybeans, RP-80 with SCO and ECO-95 | $9.50 | Nearly $14 | $645 |
| Soybeans, RP-75 with SCO and ECO-95 | $8 | Just over $14 | $643 |
In these modeled cases, adding SCO and ECO to RP-80 increased the farmer-paid premium and the modeled downside measure relative to the RP-85 baseline. The RP-75 combinations had lower premiums than RP-80 with both endorsements and slightly lower worst-5% net revenue, while modeled net benefit was slightly higher. These are comparisons among modeled choices, not proof that lowering RP coverage will improve returns on another farm; the study itself notes that expected indemnities, premiums, and net revenues vary across farms and regions.
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The key tradeoff is basis risk: the farm’s actual loss and the county’s average result may diverge. If a farm suffers a severe yield loss while the county average stays above the endorsement’s trigger, SCO or ECO may not pay. Conversely, a county-level loss can trigger an area payment even when the insured unit does not have a corresponding individual-policy loss. The closer the farm’s yields tend to move with the county average, the more closely area coverage may track its risks. USDA Economic Research Service describes this general issue in its discussion of crop insurance program provisions.
How to compare quotes for your farm
Use the farm’s own crop and county offer, not the Illinois model, to compare combinations. Ask an agent for scenario quotes using the same acreage and relevant policy assumptions, then compare the following:
- Underlying policy and level: Identify whether the base is RP, RP with Harvest Price Exclusion, YP, or another eligible plan, and record its coverage level.
- Area band and trigger: Confirm ECO’s trigger and the SCO/ECO bands actually offered for the crop year; check that they fill the intended shallow-loss range without assuming a band from another year.
- Farm-to-county relationship: Consider whether the operation’s yield history generally tracks county outcomes, since this affects the risk of a farm loss without an area payment.
- Premium and risk tradeoff: Compare the farmer-paid premium with historical or modeled indemnities and decide how much farm-level downside the household or operation can bear. The 80% subsidy does not by itself establish that an endorsement is inexpensive.
- Eligibility and interaction: Verify crop and county availability, underlying-policy eligibility, the same-insurer requirement, and whether another product makes the acre ineligible.
- Dates: Confirm the sales closing date, contract change date, and rules applicable to the crop year—especially if comparing 2026 with later years.
RMA states that exact ECO costs vary by crop, county, underlying plan, commodity price, and, for revenue coverage, market volatility during the last five days of projected-price discovery. Spring-crop rates are generally released in November. Obtain a current quote and verify the county actuarial offer and sales closing date with a crop insurance agent.
Eligibility limits to check
RMA says ECO may be held with SCO because their coverage bands do not overlap. ECO cannot be used on the same acre and crop year as Area Risk Protection Insurance (ARPI), the Hurricane Insurance Protection–Wind Index (HIP-WI), or Margin Protection. Confirm product compatibility for the exact acre and year before choosing endorsements.
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