ECO (Enhanced Coverage Option) is a county crop insurance product that provides up to 95% coverage.
In 2023, the county revenue was less than expected. The biggest factor was the decline in prices. The Projected Price for corn was $5.91. At harvest, the price dropped to $4.88. This is over $1 decline!
Some counties in our area also had lower than expected yields due to drought conditions: Butler and Grundy. You can see below that the full ECO payment will be made to farmers in these counties. Franklin had a little better than average yield, but will still receive the full ECO payment. Hamilton, Hardin, and Marshall had very good yields across the county. Due to the price decline, these counties will get a portion of the ECO payment.
Expected Revenue: Projected Price of $5.91 x Expected County Yield = Expected Revenue
Harvest Revenue: Harvest Price of $4.88 x Final County Yield = Harvest Revenue
% of Expected: Harvest Revenue / Expected Revenue = Harvest Revenue % of Expected Revenue
ECO Payout %: ECO is a band of coverage from 95% to 86% of County Revenue. The payout is maxed out at 9%. The green boxes represent that counties that trigger the full ECO payment for 2023.
$ Per Acre: If the farmer’s APH matched the expected county yield (Butler = 206.2), this would be the payment per acre. The amount paid to each farmer will vary based on their own APH. The larger the APH, the higher the payment.
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