For farmers managing large operations, risk management is critical, especially when it comes to crop insurance. One key product that deserves attention is the Enhanced Coverage Option (ECO), a relatively new addition to the crop insurance landscape that addresses specific coverage needs.


ECO is an area-based coverage option, providing additional protection for a portion of your underlying crop insurance policy deductible. It’s a supplemental insurance that offers an extra layer of protection against crop losses, covering a gap in county revenue losses that can’t be covered by other federal programs. This coverage is based on county averages and production, not on individual operations, which means it provides a loss claim to all insured farmers within that county if the average yield or revenue for the area falls below a certain threshold.

One of the significant advantages of ECO is its flexibility. It covers up to either 90% or 95% of county revenue, depending on the level of coverage the farmer selects. This range provides a band of coverage between the elected trigger level and 86 percent. It’s important to note that ECO coverage depends on county triggers and differs from the underlying policy in how a loss payment is triggered.

Price Protection

ECO is particularly relevant in scenarios where there’s a shallow price loss. In contrast to Multiple Peril Crop Insurance (MPCI) which requires a significant drop in commodity price or farm yield to claim a loss, ECO does not require such a substantial drop to owe a loss payment. This aspect makes ECO an essential tool for managing the risk of minor yet significant decreases in yield or price.

ECO provides protection against commodity price drops. If Spring base prices are high, there’s a risk that prices will fall during harvest. ECO locks in a higher revenue level, ensuring that if prices fall significantly, the loss payout will be substantial. This feature is invaluable in managing the uncertainty of commodity markets.

ECO with Marketing

Farmers can also leverage ECO in their marketing strategies. Knowing they have upper-end guaranteed county revenue can encourage more aggressive marketing tactics, backed by the safety net ECO provides. In many cases, the benefit of ECO outweighs the cost of the premium, especially in counties where high commodity prices bring significant price volatility.

Precision Risk Management (PRM) offers a comprehensive approach to ECO, providing county-specific analysis and personalized program comparison to identify the best coverage options for individual farming operations. This tailored approach ensures that farmers receive coverage that aligns precisely with their unique needs and risk profiles.

ECO offers a robust layer of protection that complements traditional crop insurance. It’s an essential tool for farmers looking to manage risks efficiently, especially in a time where slight fluctuations in yield and price can significantly impact revenue. By considering ECO as part of their crop insurance plan, farmers can protect their operations against unpredictable market and weather conditions. Get an ECO analysis and quote today.