Enhanced Coverage Option (ECO) was released by RMA as a new crop insurance product for the 2021 season.

What is ECO?

ECO is an area-based crop insurance product that allows you to cover from 86% up to 90% or 95% of the county’s expected crop value.

How does ECO fit into my crop insurance plan?

  1. You can elect Revenue Protection up to 85% on your federal crop insurance.
    • This coverage is individual crop insurance
  2. You can elect SCO (Supplement Coverage Option) from your federal crop insurance level (85%) to 86%.
    • This coverage is area-based crop insurance.
    • SCO can be purchased with PLC, not ARC-CO.
  3. You can elect ECO (Enhanced Coverage Option) from 86% to 90% or 95%.
    • This coverage is area-based crop insurance.
    • ECO is eligible with PLC or ARC-CO elections.

How much will ECO cost?

Pricing will be competitive, as there is a 44% subsidy associated with the revenue ECO coverage.

RMA provided an example for Adair County, IA

Yield: 177.7 bushels per acre

Price: $3.82 per bushel

86%-90% – $27.15 coverage = $3.10 premium per acre

86%-95% – $61.09 coverage = $9.26 premium per acre

 

If you want to enhance your crop insurance coverage for 2021, ECO will be worth looking into.

 

For more information on ECO – Click the link on the bottom of this page:

https://www.rma.usda.gov/en/Policy-and-Procedure/Bulletins-and-Memos/2020/OA-20-005