Enhanced Coverage Option (ECO)
Federally SUBSIDIZED ENDORSEMENT
We believe every farmer and producer should take a close look at ECO —using our software, we can help you understand if it’s right for you.
* At the end of July 2024, the RMA made some adjustments to ECO. Learn more about the effects these changes will have on the 2025 crop year! *
So What is ECO Anyway?
ECO, or Enhanced Coverage Option, is an endorsement that’s added to one of your policies, such as Yield Protection or Revenue Protection. This endorsement adds additional area-based coverage above your underlying individual coverage. Unlike Supplemental Coverage Options (SCO), ECO is not affected by having Agriculture Risk Coverage (ARC) for the same crop on the same acres. Adding ECO to a policy allows you to cover from 86%-90%, or even 95%. While ECO does not work with area risk protection insurance policies such as margin protection it is still an effective tool in your risk management tool kit.
EXAMPLE
Plant Price: $4.60
Expected County Yield: 187.3 Bu/Ac
Coverage Level 95% – 86%
Protection Amount $84.91 Insurance
Scenario 1
Actual County Yield = 200 Bu/Ac
Harvest Price = $3.90
Loss Payment = $42.18
Scenario 2
Actual County Yield = 170 Bu/Ac
Harvest Price = $5.20
Loss Payment = $45.22