Farm Bill Proposals to Enhance Supplemental Coverage Option (SCO)

Gary Schnitkey, Bruce Sherrick, Carl Zulauf, Nick Paulson, Jonathan Coppess and Jim Baltz

farmdoc daily, 2025, vol. 14, issue 104

Abstract: Both the House and Senate versions of the farm bill include proposals to modify Supplemental Coverage Option (SCO) insurance. SCO crop insurance provides county-level coverage from the selected coverage level on a farm-level crop insurance product up to a fixed maximum coverage level based on county-level results. This article examines the impacts of the SCO version proposed by the House for corn in McLean County, Illinois. Overall, increasing SCO subsidy levels seems questionable as a policy objective. At best, farmers risk management is improved marginally at high costs to the Federal government. A better focus would be on enhancing the protection of the underlying farm-level product.

Keywords: Agribusiness; Agricultural Policy; Crop Insurance; Farm Bill (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:illufd:358502

DOI: 10.22004/ag.econ.358502

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