Understanding the Benefits of Enhanced Coverage Option (ECO)
In today’s uncertain agricultural environment, risk management is essential for protecting your farm’s future. Crop insurance plays a pivotal role in mitigating risks from weather to market fluctuations, but did you know there’s an additional way to safeguard your crops and income?
The Enhanced Coverage Option (ECO) is an endorsement to your existing multi-peril crop insurance (MPCI) policy that provides extended protection. And with increased crop insurance premium support (2025 was 65%, 2026 increased levels to 80%), you may consider taking an extra look since ECO is now more affordable than ever.
What is the Enhanced Coverage Option (ECO)?
ECO is designed to provide an extra layer of protection beyond your standard MPCI policy. It covers county-based losses, offering coverage at 90-95% on all your planted acres. This means that when severe weather or drastic market shifts hit, your financial safety net is wider and more robust.
The federal premium support increase from 65% to 80% has made this coverage expansion more affordable. If you’ve been considering adding ECO to your crop insurance, now is the perfect time.
Why Should You Add ECO to Your Crop Insurance?
- Shallow Loss Coverage
ECO provides coverage levels that range from 90-95%, significantly higher than what standard MPCI offers. This added protection can cover county-level yield or revenue losses due to natural disasters, adverse weather or market price fluctuations that affect your bottom line. Shallow loss coverage at 95% has a much higher frequency trigger than standard or base policy coverage levels. - Affordability with an 80% Subsidy
Thanks to a recent increase in federal subsidies, the cost of adding ECO to your crop insurance plan is much lower than in previous years. With a crop insurance subsidy increase to 80%, farmers can now access this valuable coverage at a fraction of the cost, ensuring that you get the protection you need without straining your budget. - Protection Against Market Volatility
Agriculture is a business deeply affected by the market. Prices for crops can fluctuate rapidly, and ECO helps ensure you won’t face the full brunt. By extending the coverage levels of your MPCI, ECO offers revenue protection to help stabilize your farm income if prices drop unexpectedly.
Historical data detailed below, combined with current expectations, can inform your decision. Be sure to consider the possibility of market fluctuations due to the current trade environment, yield projections and other volatility when looking at unofficial price projections. ECO indemnities are calculated using county yields x harvest price. Based on the frequency of price drops and volatility in the commodity markets, this shallow loss coverage can be a very effective risk management strategy.
Compeer Financial is Here For You Every Step of the Way
We know that every farm is different. That’s why we tailor your crop insurance to fit the specific needs of your operation. Whether you’re interested in adding ECO to your policy or exploring other insurance options, we’re here for you. Our team of specialists will work with you to develop a customized risk management strategy that provides peace of mind throughout the growing season.
For more details on ECO and other crop insurance options, contact your crop insurance officer. Compeer Financial is here for you as a trusted partner. We’re here for you with the tools, resources and personalized support to help you farm thrive.
Frequently Asked Questions
What is ECO and how does it work?
Enhanced Coverage Option (ECO) is a supplemental product that stacks on top of your underlying multi-peril crop insurance (MPCI) policy to provide additional protection for yield and revenue losses up to 95%. It covers a percentage of county-level losses not covered by your base policy, using your individual average production history (APH) for liability.
How much does ECO add to my existing premium?
While crop insurance premiums vary annually, the new 80% federal premium support makes ECO more affordable than ever, significantly reducing the cost of this added protection.
How does ECO affect my claims process?
The claims process for ECO is designed to complement your existing MPCI coverage, ensuring that you receive additional compensation for qualified losses with minimal complexity. In fact, claims are completely automated with no need for an adjuster. This means quick and efficient payments, like June payouts for spring-planted crops.
What About SCO?
Supplemental Coverage Option (SCO) works just like ECO, but in a lower band of coverage.
New enhancements for 2026:
- Subsidy increased to 80%
- Combinable with MCO or ECO for no coverage gaps
- No conflicts with FSA program elections
- Starting in 2027, the coverage band expands to 90% (up from 86%)
For as low as a few dollars per acre, SCO is a valuable addition for farms wanting broader protection alongside base policy, especially when paired with an RP plan.
Next Steps Before March 15
With more options to consider it’s easy to feel overwhelmed. But with the right tools and guidance, you can design a coverage strategy that supports your operation's goals.
Our crop insurance team can help you:
- Understand your breakeven and margin risk
- Compare projected prices and historical trends
- Use tools to simulate how each option may work on your acres
Crop Insurance
Crop insurance provides farmers with risk management tools to protect against crop loss or the loss of revenue due to declines in crop prices.
