Performance of SCO and ECO in the Midwest

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

farmdoc daily, 2025, vol. 14, issue 136

Abstract: Supplemental Coverage Option (SCO) is a county-level insurance product that adds a band of coverage over the underlying COMBO crop insurance product up to an 86% coverage level. Enhanced Coverage Option (ECO) provides an additional band from 86% up to either 90% or 95% coverage again based on the county-wide outcome. This article evaluates SCO and ECO for non-irrigated corn and soybeans in the Midwest states from 2015 to 2023. If purchased each year, results show that SCO and ECO had very low payments relative to premiums, particularly for Illinois, Indiana, Iowa, Ohio, and Wisconsin. Given the loss performance, justifying the use of SCO and ECO to supplement coverage is difficult, particularly in regions with low yield variability.

Keywords: Agribusiness; Premiums and Payouts; Weekly Farm Economics (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:illufd:358470

DOI: 10.22004/ag.econ.358470

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