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).
- 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.
- NAU Country Enhanced Coverage Option Fact Sheet
- Enhanced Coverage Option Endorsement Common Crop Insurance Policy
- Enhanced Coverage Option Endorsement Insurance Standards Handbook
- Enhanced Coverage Option USDA Fact Sheet
- Frequently Asked Questions - Enhanced Coverage Option