Question:
“I recently heard about a crop insurance product for 2027 on corn and soybeans called MCO. What is MCO, and how does it differ from the Enhanced Coverage Option (ECO) and Supplemental Coverage Option (SCO) that I purchased last spring?”
Clint Coffelt
Assistant Vice President, Insurance
đź“Ť Maryville Branch
Most crop insurance products including SCO and ECO protect against lower yields, lower prices, or a combination of the two. The Margin Coverage Option (MCO) adds input costs to the coverage equation.
MCO shares some similarities with the Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO). All three are area-based coverages working alongside your underlying multi-peril corn or soybean insurance policy as an endorsement for specific bands of coverage, but they are available for purchase at different times of the year. Here are a few key differences:
Margin Coverage Option (MCO)
- Protects against area-level declines in operating margin.
- Includes certain input costs, such as fertilizer, diesel, and natural gas.
- Uses an early projected pricing period of August 15 through September 14.
- Covers the 90% to 95% coverage band.
- Sales closing date: September 30, 2026.
SCO and ECO
- Protect against area-level yield and/or revenue losses.
- Uses the same projected pricing period as the underlying crop insurance policy (February 1 through February 28).
- SCO covers from your underlying policy level up to 90%.
- ECO covers the 90% to 95% coverage band.
- Sales closing date: March 15, 2027.
It is important to note that you can choose MCO or ECO, but not both coverages on the same crop and county. Our experience has shown that most often a decision to purchase one over the other will depend on your outlook on the respective commodity market.
Each of these products now carries an 80% subsidy for conservation compliant policyholders. If you would like help with exploring whether MCO, SCO, or ECO is a fit for your farm, contact your FCS Financial Crop & Livestock Insurance representative before the September 30 deadline.
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Our specialized crop insurance agents are here to help you evaluate MCO, ECO, and SCO before the enrollment deadlines.
