USDA is increasing premium subsidies and expanding the number of crops eligible for the Enhanced Coverage Option, a crop insurance product that provides high levels of area-based yield or revenue coverage.
ECO, which was available this year for 36 crops, is being made available for almonds, apples, blueberries, grapes, and walnuts starting with the 2025 crop year. Citrus crops in California and Arizona also will be eligible for 2026, if their area is available for the Supplemental Coverage Option.
ECO and SCO allow farmers to cover much of the deductible on their underlying policies.
SCO covers up to 86% of revenue with a 65% federal subsidy. With ECO, farmers can cover up to 95% of the county yield or revenue.
The Risk Management Agency is increasing premium support for ECO to 65%, the same subsidy level available for SCO.
USDA currently subsidizes 51% of the premium for ECO yield coverage and 44% of the cost of revenue coverage.
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Producers purchased the ECO option on revenue policies for 11.3 million acres this year, according to USDA data. In 2023, producers were paid $414 million in ECO-revenue protection indemnities and 12 million acres were enrolled in the option.
RMA is increasing the premium subsidies and expanding the number of eligible crops at a time when a new farm bill is stalled on Capitol Hill. Both the House and Senate Ag Committees are proposing to increase premium subsidies for SCO.
A farm bill advanced by the House Agriculture Committee in May would increase the premium subsidy on the Supplemental Coverage Option from 65% to 80% and raise the top coverage level from 86% to 90%.
Senate Ag Committee Chairwoman Debbie Stabenow, D-Mich., has proposed to raise the premium subsidy for SCO to 80% and to increase the coverage level to 88%.
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