A Kansas State University agricultural economist is encouraging farmers to know their options before considering a pair of crop insurance policies that would allow them to increase their coverage for row crops beyond what is allowed for individual policies.
Jenny Ifft said the March 15 deadline to sign up for crop insurance includes options for what is known as high coverage crop insurance. They include the Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO).
“High coverage policies — such as SCO and ECO and Margin Protection that is purchased in the fall — represent a different approach to managing risk that requires a larger upfront investment,” Ifft said. “I suggest producers work closely with an agent to make sure you fully understand what you are getting into.”
Crop insurance is purchased by farmers and subsidized by the U.S. government to protect against the loss of their crops due to natural disasters, or loss of revenue due to declines in the price of the particular crop they’re insuring.
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