MP vs MP vs ECO
How to decide?
It’s easy to get Margin Protection (MP), Enhanced Coverage Option (ECO), and Enhanced Margin Coverage Option (MCO) confused.
At first glance, these products might look nearly identical. They all offer coverage above 80% levels, aim to protect revenue and margin, and are often used in tandem with your underlying Revenue Protection (RP) policy. But the differences on how each one works, when they’re triggered, and how they pair with your operationโs risk profile can make all the difference in your bottom line.
Easy Comparison Guide
Lock-in Starting Price at Different Times
The three products lock in your startingย projected prices during different Discoveryย Periods.
MP and MCOโs early pricing helps farmers lock in protection against margin losses well ahead of planting, based on input and crop prices established months in advance.
ECO uses the February discovery period with traditional Revenue Protection (RP) policies.
These different discovery periods have can have a large impact on what the prices are for your policy. Markets can change a lot in six months.
Discovery Periods
Different tools, different timing. Each one fitting a specific part of your risk management strategy.
Historic Price Changes From Price Discovery Periods
These charts illustrate what the price fluctuations would have been in the past during the price discovery periods and the harvest price. These products were not all available during this time frame, but provide good context on how prices have shifted in previous years.
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Your County Matters to Your Choice
Area-based plans need analysis to see if they are fit for your operation.
County Specific Analysis and Personalized Quote
PRM takes a deeper dive into these programs than any other company. With PRMโs county analysis tools, PRM will do a county specific analysis to examine what opportunities there are for a farmer in the area. Using historical yield tracking, the analysis will show where yields are too high or too low compared to expected results.
Personalized Program Comparison Analysis
Precision Risk Management takes a comprehensive look at your risk management plan to identify he best USDA and FSA programs. PRM will look at your specific operation and county to identify the largest revenue protection and the trigger points for each of the different programs.
