ECO & SCO
Overview & Key Points
ECO - Enhanced Coverage Option (New in 2021)
65% subsidy ** NEW / Increased for 2025 **
SCO - Supplemental Coverage Option (New in 2015)
65% subsidy
ECO & SCO are both insurance options provided & subsidized by the federal government. They can be added to your MPCI policy as an endorsement and used to provide protection against declining crop prices & lower county yields
Loss Payments
Area Plan - based on COUNTY yields
95% ECO - a loss is triggered once the county yield OR the county revenue drops below 95%, and the max ECO loss is reached once the county yield OR the county revenue drops below 86%
86% SCO - a loss is triggered once the county yield OR the county revenue drops below 86%, and the max SCO loss is reached once the county yield OR the county revenue drops below your MPCI coverage level
If there is a loss, it will be paid out the following summer (approx. mid June)
The reason for the delay is the actual county yield is based on crop insurance data and it is not finalized until mid May
Loss payments are automatically calculated and paid out since not based on your yields or prices - no adjuster or claim submission necessary
If you have RP (Revenue Protection), you are more likely to trigger a loss if one or both of the following happen:
The harvest price decreases (Dec. futures for Corn / Nov. futures for Soybeans)
The harvest yield decreases (actual county yield)
Subsidized
ECO - 65% subsidy ***NEW / increased for 2025 crop year***
Previous: 44% subsidy (51% subsidy if YP)
SCO - 65% subsidy (same as before)
BFR additional subsidy benefit applies to SCO & ECO as well
ECO & SCO Similarities
Area Plan - based on COUNTY yields
You could have a loss on your farm, and NOT receive an ECO or SCO payment, or vice-versa
Revenue & Yield Guarantees available
Follows your underlying plan of insurance
Ex. If you have RP MPCI, then if you add ECO or SCO coverage, they will be RP as well
RP provides BOTH revenue & yield guarantees
ARC-CO is revenue ONLY
So when prices are higher like they are now, the ARC-CO yield guarantee is lowered proportionately to keep the revenue only guarantee the same
Prices - both use the same MPCI spring and harvest prices
$4.70 corn, $10.54 soybeans (2025 spring prices)
If you have RP (Revenue Protection) MPCI, which most do, then your ECO or SCO also calculates your revenue guarantee using the higher of the spring or harvest price.
ARC-CO uses prices based on a two year lagging 5 year olympic average (2018-2022)
$5.03 corn, $12.17 soybeans for 2025 crop year
ECO & SCO Differences
Coverage Levels
95% ECO provides coverage from 95% down to 86%
As a result, ECO provides a 9% coverage band
The reason ECO starts at 86% is because that is where both SCO and ARC-CO start to provide coverage
86% SCO provides coverage from 86% down to your MPCI coverage level
Ex. If you have 75% MPCI, then SCO provides an 11% band of coverage from 86% down to 75%
MPCI only allows coverage levels up to 85%
ARC / PLC election
ECO - it does not matter if you enrolled in ARC-CO or PLC
SCO - you can NOT have SCO coverage if you are enrolled in ARC at FSA (by FSN, by crop)
If you add SCO but still have ARC on one or more FSNs, then the SCO coverage will be removed from those acres tied to those particular FSNs on your crop insurance policy
To have SCO coverage, you need to be signed up for PLC at FSA
One or both
You can purchase SCO and not ECO, or vice-versa, or you can purchase both together
March 15th sign-up deadline (same as MPCI)
Links to key websites / documents:
Other Key Points:
SCO was first made available in 2015
ECO was first made available in 2021
SCO & ECO:
No replant or prevent plant coverage (your underlying MPCI policy already provides this)
Provides county based coverage for a portion of the deductible of your underlying MPCI policy
Coverage is continuous (from year to year) until the endorsement or underlying MPCI policy is cancelled
SCO: if you change your MPCI coverage level, your SCO coverage band will automatically adjust
County Yields
Expected & Actual County yields are based on RMA data collected through the federal crop insurance programs
Coverage Dollar Amount
For both SCO or ECO, your coverage is a function of your APHs (approved yields)
SCO coverage ($ amt) = APH x Price x SCO coverage band x Coverage Factor
Price = higher of spring or harvest price (IF you have RP)
SCO coverage band = 86% - (Your MPCI coverage level)
Ex. If you have 75% MPCI, then SCO coverage band is 11% (86% - 75%).
Coverage Factor: you can select from 50% to 100% to scale up or down the dollar amount of insurance & premium to suit your needs / preference.
ECO coverage ($ amt) = APH x Price x ECO coverage band x Coverage Factor
Price = higher of spring or harvest price (IF you have RP)
ECO coverage band = (90% or 95%) - 86% = 4% or 9%
Coverage Factor: you can select from 50% to 100% to scale up or down the dollar amount of insurance & premium to suit your needs / preference.
Margin Protection
IF you signed up for Margin in the fall (9-30-23 sign up deadline for the 2024 Crop Year), then you can NOT purchase ECO or SCO in the spring
Margin & ECO similarities
Area plan - based on county yields
Up to 95% coverage levels & same subsidy levels
Same harvest price for corn and beans (set in October)
Margin & ECO differences
Margin provides some protection against rising input cost; ECO does not
Margin projected price set early in Aug-Sep before crop year; ECO projected price set in spring (February) just like MPCI
Margin has higher total liability (max payout)
Margin = expected revenue x coverage level x protection factor (similar to MPCI RP)
ECO = only a 4% or 9% band of coverage
Margin loss payments are REDUCED by any MPCI production loss payments; ECO payments are not
As a result, you can receive a discount on your Margin premium that varies based on how much coverage your underlying MPCI policy provides
SCO: What Happens If I add SCO but I am still signed up for ARC at FSA?
You can NOT have SCO coverage if you are enrolled in ARC at FSA (by FSN, by crop)
If you add SCO but still have ARC on one or more FSNs, then the SCO coverage will be removed from those acres tied to those particular FSNs on your crop insurance policy
To have SCO coverage, you need to be signed up for PLC at FSA
If you do not report acres that are covered by ARC on your acreage report, those acres will be ineligible for an SCO payment and you may still owe 60 percent of your SCO premium on those acres to cover administrative expenses. However, your underlying policy will still be in effect.
Last Updated: 3-1-2025
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