Library

Supplemental Coverage Option Now a Part of the Federal Crop Insurance Program

Paul Goeringer and, Howard Leathers (January, 2015)

Summary

The 2014 Farm Bill created Supplemental Coverage Option (SCO), a new add-on crop insurance option which provides supplemental coverage on a producer’s underlying crop insurance policy. SCO operates by mimicking a producer’s individual crop insurance coverage and increasing the protection to 86 percent of the producer’s actual production history (APH) yield and price election. An SCO loss payment occurs when the actual current year county yield (or revenue) is less than 86% of expected county yield (or revenue) at the time of planting