Enhanced Coverage Option vs. Margin Protection.

ECO and MP are both great tools to use as top end crop insurance coverage.  Although, you can’t elect both ECO and MP coverage. Below is a list of similarities and differences between the products that can help you make a decision.

 

Here are a few similarities between ECO and Margin Protection: 

95% County Revenue Product

  • Both policies allow you to have up to 95% county level coverage.

Subsidized by Government

  • Both policies are heavily subsidized, unlike private top end products.

Keep Individual Coverage

  • Both policies allow you to keep your individual Revenue Protection policies.

 

Here are the differences between ECO and Margin Protection:

Discovery Period

  • ECO sets the initial price in February.
  • MP sets the initial price in the prior fall (from mid-August to mid-September).

Liability

  • ECO provides up to a 9% band of coverage.
  • MP provides the full 95% coverage.

Payment Offset

  • ECO is paid regardless of individual coverage.
  • MP will be offset by individual coverage, meaning you get the higher of the two payments.

Underlying Coverage

  • ECO will match the underlying individual coverage.
  • MP does not have to match the underlying individual coverage. For example, you can elect to remove the Harvest Price Option on MP and keep your Revenue Protection that includes the Harvest Price Option.

Input Cost

  • ECO doesn’t consider input cost changes.
  • MP is impacted by variable input cost changes.

 

Now or Later

Both ECO and MP are great tools that offer 95% Coverage Level.  One of the biggest differences to note is the discovery period. Do you want to lock in price NOW with MP? Or do you want to wait until LATER for ECO pricing?

 

Using Margin Protection as Price Protection