Coverage Changes From Last Year
The numbers are in. The 30-day Price Discovery Period* for Margin Protection (MP) and Margin Coverage Option (MCO) has closed for the 2027 crop year.
- Corn: $5.25 | Volatility .22
- Soybeans: $12.33 | Volatility .16
*Non-irrigated. Check with your agent for your specific crop, practice, state, and county prices.
These prices are now locked in as the starting point for your MP and MCO guarantees. They’re the number harvest prices and county yields will be measured against to determine whether an indemnity is triggered. The prices won’t move lower but, depending on your policy, the prices and guarantees could rise during harvest.
Key Sales Close Dates
- 9/30: MCO & MP (Spring Crops)
- 9/30: ECO & SCO (Wheat*, Forage Production) *Check with your agent on availability; wheat dates vary by state
- 3/15: ECO & SCO (Spring Crops)
Why These Prices Matter
MP and MCO are built to protect your margin using a combination of county yield, commodity price, and input cost risk. With the base price now set:
- If harvest prices fall below this level, your floor is already locked in.
- If county yields drop or input costs climb between now and harvest, that coverage could cover some of the losses.
The Big Change From Last Year:
Starting in crop year 2027, MCO and ECO are only available in a single band: 90–95%.
Supplemental Coverage Option (SCO) area loss trigger is moving from 86% up to 90%. Because SCO now covers more of the gap down to your underlying policy, the 86–90% coverage band for both MCO and ECO has been eliminated.
Coverage Note to Current MCO 86-90% Policyholders
If you currently carry MCO at the 86–90% level, that policy will be canceled for 2027. To keep MCO coverage, you’ll need to sign a new application electing the 95% coverage level. This will also apply to Enhanced Coverage Option for the 3/15 sales close date.
An MCO protection Example
To see what this actually looks like on paper, here’s a county-level scenario. This is the only MCO coverage option available for 2027 within the 90-95% coverage band.
The choice in 2027: MCO vs MP vs ECO
Three similar products, but the differences in how each one works, when they’re triggered, and how they pair with your operation’s risk profile can make all the difference in your bottom line.
Your Agent can provide risk management support
Area-based plans may require analysis to determine whether they are a good fit for your operation and area. Your agent can provide you with support in selecting the right product for your risk management strategy. Contact a PRM Risk Management Agent today.
