• Loss Payments

  • Area Plan - based on COUNTY yields

  • 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

  • ECO - a loss is triggered once the county yield OR the county revenue drops below your ECO coverage level of 90% or 95%, and the max ECO loss is reached once the county yield OR the county revenue drops below 86%.

  • 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

  • SCO - 65% subsidy

  • ECO - 65% subsidy ***NEW / increased for 2025 crop year***

    • Previous: 44% subsidy (51% subsidy if YP)

  • BFR additional subsidy benefit applies to SCO & ECO as well

• SCO & ECO Similarities

  • Area Plan - based on COUNTY yields

    • You could have a loss on your farm, and NOT receive an SCO or ECO payment, or vice-versa

  • Revenue & Yield Guarantees available

    • Follows your underlying plan of insurance

    • Ex. If you have RP MPCI, then if you chose SCO or ECO 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

    • $4.66 corn, $11.55 soybeans (2024 spring prices)

    • $5.91 corn, $13.76 soybeans (2023 spring prices)

    • If you have RP (Revenue Protection) MPCI, which most do, then your SCO or ECO 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)

      • $5.06 corn, $12.20 soybeans for the 2025 crop year

      • $4.85 corn, $11.12 soybeans for the 2024 crop year

      • $3.98 corn, $9.57 soybeans for the 2023 crop year

• SCO & ECO Differences

  • Coverage Levels

    • SCO provides coverage up to 86%

      • Coverage starts where you MPCI stops - Ex. If you have 75% MPCI, then SCO provides an 11% band of coverage from 75% up to 86%

    • ECO provides coverage from 86% up to 90 or 95%

      • As a result, ECO provides either a 4% or 9% coverage band

      • The reason ECO starts at 86% is because that is where both SCO and ARC-CO provide coverage up to

    • MPCI only allows coverage levels up to 85%

  • ARC / PLC election

    • 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

    • ECO - it does not matter if you enrolled in ARC-CO or PLC

• 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: 6-14-2024

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