Revenue Protection (RP)
Based on an APH yield of 200, 80% Revenue Protection provides 160 bushel guarantee. With no other coverage, there is a bushel deductible of 40 bushels per acre. You can see this illustrated in the first bar.
Supplemental Coverage Option (SCO)
SCO is a county based coverage that starts where Revenue Protection ends and covers up to 86% of county revenue. In the second bar, you can see that SCO increases the guarantee up to 172 bushels per acre. SCO premiums are relatively low compared to other products, which makes it an attractive option. PLC has to be elected in order to purchase SCO. To learn more about PLS read my blog post Farm Bill Analysis 2022-23.
Enhanced Coverage Option (ECO)
ECO is a 95% county based coverage. It provides a 9% band of coverage above the optional SCO coverage. By including ECO in your crop insurance plan, you reduce your deducible to 10 bushels per acre. Look at the third bar below for a visual.
Remember SCO and ECO are based on county yield, not your individual yield. In regards to price protection, it will cover the same as your Revenue Protection policy. We are tracking around $5.50 for December 2022 corn futures and 95% of $5.50 is $5.23. With average county yields, ECO would start triggering below a $5.23 Harvest Price.
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