NAU Country News

NAU Country offers the Enhanced Coverage Option (ECO)

The Enhanced Coverage Option is an area-based supplemental shallow-loss coverage that covers loss from 86% up to 90% or 95%. The endorsement is offered on 31 crops for the 2021 crop year. For 2021, ECO will only be available on crops and counties with a contract change date of 11/30 or later. Crop expansion is planned for 2022. 

Why consider adding ECO?

  • ECO offers up to 95% coverage, which is the highest subsidized coverage available.
  • ECO is county-based*, which benefits producers whose yield and revenue correlate with the county*.
  • ECO can trigger an indemnity on only a 5% loss in revenue or yield (dependent on the underlying MPCI coverage plan).

ECO endorsement overview

  • Producers must purchase an individual buy-up policy to purchase ECO.
    • ECO is an endorsement to Actual Production History (APH), Yield Protection (YP), Revenue Protection (RP), Revenue Protection with the Harvest Price Exclusion (RP-HPE) or a Yield-Based Dollar Amount of Insurance policy.
    • ECO Sales Closing Date matches the underlying individual coverage.
    • ECO is continuous and remains in effect for the insured crop until cancelled.
    • ECO follows the coverage of your underlying policy.
      • A Yield Protection coverage means ECO covers yield losses.
      • A Revenue Protection coverage means ECO covers revenue losses.
    • The amount of ECO coverage depends on the liability, coverage level, and approved yield of your underlying policy.
      • If there are multiple types or practices for the insured crop in the county, the supplemental protection will be determined separately for each coverage level, type, and practice.
    • Projected and harvest prices for ECO will match the individual coverage.
    • High Risk Land acreage:
      • Insured by the underlying policy is insured under ECO.
      • Excluded from an underlying policy under the High Risk Land Exclusion Option (HRLE) is not insured under ECO.
      • Insured under a separate policy by the High Risk Land Alternative Coverage Endorsement (HRACE), must have ECO elected on the HRACE policy when it is selected on the underlying policy.
  • Separate premium and administrative fees for ECO by crop/county.
  • ECO’s subsidized rate is as follows:
    • 44% rate for revenue plans.
    • 51% rate for yield plans.
  • Producers may purchase the Supplemental Coverage Option (SCO) along with ECO.
    • Producers are not required to purchase SCO, they can leave a gap in coverage.
  • ECO is not impacted by Farm Program decisions, including Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC).
  • If a producer buys ECO, the producer may not:
    • Purchase Margin Protection (MP), Margin Protection with the Harvest Price Option (MP-HPO), Area Revenue Protection Insurance (ARPI), Hurricane Insurance Protection Wind Index (HIP-WI), or other area plans.
    • Apply ECO on acres that are already covered by Stacked Income Protection (STAX).

Indemnity overview

  • ECO expected and final yields are based on RMA data, NOT producer yields.
  • ECO indemnities will be paid in the summer following the crop year, NOT at harvest time.
  • ECO and individual coverage trigger independently, it is possible for a grower to have:
    • An ECO indemnity, but no individual indemnity.
    • An individual indemnity, but no ECO indemnity.
    • Indemnities from both programs.
    • No indemnities.


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