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.

Resources

• 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

News Stories

• NAU Country leads the development of Enhanced Coverage Option (ECO) to Help American Farmers further protect their crops
• USDA Introduces Enhanced Coverage Option (ECO) crop insurance product
• USDA Administrator's Message: Better options for our farmers