ECO dollar per acre coverage will be determined by your individual APH. You can elect 95% coverage, which gives you a 9% coverage band. Or you could elect 90% coverage which gives you a 4% coverage band.

Let’s take a look at how the ECO dollars per acre coverage is calculated.

In this example, a farmer with a 210 APH would have $75.60 of ECO coverage per acre at the 95% coverage level.

 

ECO Dollar Per Acre Coverage

95% coverage election (9% coverage band)

Farmer APH = 210

Projected Price = $4.00

Expected Revenue = $840 (210 bu x $4.00)

ECO Dollar Per Acre Coverage = $75.60 ($840 x 9%)

 

Each farmer will have a different dollar per acre coverage based upon their APH.

Remember that ECO claims will be based upon county yields, not individual yields. Every farmer in the county will trigger a claim at the 95% coverage level, if the county revenue falls below 95% of the county’s expected revenue. The claim payment however, will be based upon your individual coverage per acre.

 

For more information about ECO, check out my blog post:

ECO – Enhanced Coverage Option