The University of Illinois’ Farmdoc Daily says some farmers should possibly consider the Enhanced Coverage Option in 2025 as premium costs will be lower this year.
The ECO is a crop-insurance product where farmers have the option to insure at either a 90 percent or 95 percent coverage level. One important fact about the ECO is that, unlike SCO, ECO does not restrict the choice of commodity title program.
Farmers can’t purchase SCO coverage on acres enrolled in the Agriculture Risk Coverage commodity program, but in contrast, ECO can be used even if ARC is selected as the commodity title choice.
The Risk Management Agency has increased the premium subsidy rate for ECO to 65 percent for 2025 and future years. Farmers may wish to consider ECO because its premium will be lower than last year, and revenue protection will likely cover less of the 2025 cost of production.
-NAFB