Trends and Outlook for Supplemental Crop Insurance in the United States, 2025

Francis Tsiboe, Henrique Monaco, Hongxi Zhao, Jennifer Ifft, Rwit Chakravorty, Dylan Turner and Shawn Arita

No 412822, ARPC Report from North Dakota State University

Abstract: This report examines supplemental crop insurance under the Federal Crop Insurance Program and how participation may change under the One Big Beautiful Bill Act (OBBBA). Using USDA Risk Management Agency data from 2015–2025 and early 2026 sales, the analysis shows that growth has been concentrated in the Enhanced Coverage Option (ECO). By 2025, supplemental coverage reached 86 million acres, 72 percent consisting of ECO, while Supplemental Coverage Option (SCO) adoption declined from its 2023 peak. ECO acreage increased roughly 4-fold after the 2025 subsidy increase, consistent with strong sensitivity to producer-paid premiums. Early 2026 sales project adoption of 61.8 percent of eligible acres for ECO and 26.5 percent for SCO, although observed ECO adoption remains about 10 percentage points lower than projected where reporting is complete. Because supplemental products cover narrow layers above the deductible, acreage growth does not translate proportionately into insured value. OBBBA’s recalibrated coverage bands take effect in 2027.

Keywords: Agricultural and Food Policy; Agricultural Finance; Farm Management; Production Economics; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2026-09-23
New Economics Papers: this item is included in nep-agr
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/412822/files/ARPC%20Report%202026-07.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:arpcre:412822

DOI: 10.22004/ag.econ.412822

Access Statistics for this paper

More papers in ARPC Report from North Dakota State University
Bibliographic data for series maintained by AgEcon Search ().