Supplemental Coverage Option: SCO
Bridging the Gap to 86% Coverage
80% Subsidized Starting in 2026
What It Is
SCO is a county-level coverage. It provides coverage for a portion of the expected revenue or yield for your entire area, rather than just your specific farm.
Instead of relying solely on your individual farm coverage, SCO allows you to add a top layer of protection based on county performance. You purchase SCO as an add-on to your standard multi-peril crop insurance (MPCI), such as Yield Protection (YP) or Revenue Protection (RP).
How SCO Works
Imagine SCO as a top layer of coverage that sits directly on top of your standard crop insurance policy. It acts as a bridge, covering the gap from your individual coverage level up to 86%.
Your Individual Policy: Covers from 0% up to your selected level
SCO Policy: Covers from your individual policy up to 86%
SCO Basics
Supplemental Coverage Option (SCO) is designed to protect you against shallow losses. These are the moderate drops in yield or revenue that often fall short of triggering your standard policy, meaning you would normally have to absorb the cost yourself. SCO adds an extra layer of security on top of your individual policy, extending your coverage up to 86% of expected county revenue or yield.
Up to 86% Levels
Loss payments begin when county revenue or yield falls below 86% of its expected level.
BRIDGES THE GAP
Provides coverage for the specific range between 86% and your underlying policy level.
Stacks on top of underlying policy
Sits on top of policies like Revenue Protection (RP) or Yield Protection (YP).
stackable with eco
You can combine with the Enhanced Coverage Option (ECO) to extend coverage up to 95%
AREA-BASED TRIGGER
Indemnities are triggered by county yield or revenue, not your individual farm performance.
No “Overlap” Rule
Pays out only on the deductible of your underlying policy; it does not overlap with your individual coverage.
Higher Coverage. Area Protection.
SCO provides protection for growers by covering the “shallow loss” deductible that standard policies leave open.
Area-Based Coverage
Supplemental Coverage Option (SCO) does not use your individual farm’s yield or revenue to trigger a loss. Instead, it uses data from the county.
High Subsidy Saves You Premium
The government heavily subsidizes the cost of SCO for farmers. Starting for the 2026 crop year, the premium subsidy has increased to 80%. This makes high-level coverage significantly more affordable for producers.
How Indemnities Work
The Trigger
SCO coverage begins to pay when the final county revenue or yield falls below 86% of the expected level.
The Ceiling
The 86% trigger acts as the ceiling of your SCO coverage. The policy pays the difference between 86% and the actual county result. The payments stop once the loss reaches your underlying policy level.
Separate Indemnities
SCO payments are determined only by county average performance. They are not affected by your individual policy.
• It is possible to have a loss on your farm but not get an SCO payment (if the county did well)
• It is possible to get an SCO payment even if your farm had a good year (if the county did poorly)
SCO indemnities are paid in the Spring of the next crop year. The Risk Management Agency (RMA) must calculate county yields/revenues before any indemnity payments are made.
How SCO Pairs with MPCI
Your underlying policy determines how SCO protects you:
• If you choose Revenue Protection (RP), SCO covers revenue loss.
• If you choose Yield Protection (YP), SCO covers yield loss.
Program Pairing
Flexibility Pairing with ARC or PLC
SCO is available to pair with either Farm Program of Agricultural Risk Coverage (ARC) or Price Loss Coverage (PLC).
Not compatible with CLIP as it creates coverage overlap.
Eligibility and Specifics
Crop Eligibility
• Available for over 50 different crops, including Corn, Soybeans, Wheat, Sorghum, Cotton, and Rice.
Sign Up Deadline
• You must purchase SCO by the Sales Closing Date for your underlying policy.
No Replant or Prevent Plant
• SCO does not provide payments for replanting or prevented planting expenses. It only insures planted acreage. This does not affect Replant or Prevent Plant on your individual policy.
County Specific Analysis
and Personalized Quote
PRM takes a deeper dive into SCO more than any other company. With PRM’s SCO 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 the comprehensive look at your risk management plan to identify the 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.
