ECO and SCO in Fall of 2026

For a lot of growers, wheat claims even at higher levels of coverage, are few and far between.  While we here at Foothills Crop Insurance have historically been against area level coverage like the Enhanced Coverage Option (ECO) and the Supplemental Coverage Option (SCO), subsidy increases at the beginning of 2026 has changed our thinking on the matter.

Just because it may be unlikely to collect on a wheat revenue protection policy, you may still receive an indemnity on an accompanying ECO and/or SCO policy.  In the past, ECO and SCO needed to pay out once every five years to cover your paid premium, however, the 2026 subsidy increase means they only need to pay once in full every ten years in order to cover your premium.  What’s more, both ECO and SCO have had substantial payments for wheat in many NC/SC counties the past two years (more if you go back to 2017) and will likely pay for 2026 if anecdotal reports of wheat yields are any indication.  

As an example, look at ECO and SCO for Cleveland County, NC since 2017.  At current subsidy levels ECO would have paid out around $120/acre total over that nine year time period whereas the premium would have totaled roughly $30/acre.  Likewise, SCO at the 75% level would have paid out around $30/acre total over the same nine year period and only cost a total of roughly $20/acre in total.

Below are some Frequently Asked Questions  about both programs and how they apply to wheat and other small grain crops.  As always, if you have more questions, please feel free to contact us!  800-660-8674

What is the Enhanced Coverage Option (ECO)?  What is the Supplemental Coverage Option (SCO)?

Both ECO and SCO are area based crop insurance policies that may be attached to your underlying Yield Protection (YP) or Revenue Protection (RP) policy. Your SCO and ECO liability is set based on yourhistoric production history, but losses are calculated by the counties’ average yield and revenue.  This means that while you may have high yields and not receive an indemnity for the crop you planted, you could still receive an ECO or SCO payment if the county averages are below its expected yield and/or revenue.

What does ECO/SCO cover?

ECO and SCO trigger if the county averages less yield and/or revenue for the insured crop.  ECO triggers if the county averages under 95% (or 90% if you choose 90% ECO) of its expected yield/revenue and maxes out if it makes under 86%.  SCO begins to pay if the county averages under 86% of its expected yield/revenue, and maxes out if the county averages less than your chosen coverage level.

How much does ECO/SCO cost?

Consult with your agent for exact figures, as premiums will vary based on your county and crop you are insuring, as well as your underlying coverage level in the case of SCO.  As a ballpark reference, if you have a 75% Enterprise Unit on your underlying policy, ECO and SCO each will cost around half the premium of your underlying policy.

Example: 2026 - 75% Wheat RP/EU Union County NC: $6.10  ECO: $2.68 SCO: $2.21

Why should I consider ECO and SCO on wheat?

A lot of growers don’t expect to have a wheat claim most years and take a very low buy-up level or even CAT coverage in order to keep premiums low.  ECO in particular is an additional option that can be added relatively cheaply and increase the chances of receiving an indemnity.  ECO will have the same premium whether you have an 85% level or CAT coverage, and will pay out in full if the county makes less than 86% of its expected yield or revenue.  The cost of SCO increases as your underlying policy level gets lower, but it is still an affordable way to hedge against the county's production and revenue and collect possible indemnities even if you’re confident that you are unlikely to have a claim on your individual farm.

Can I have ECO/SCO and the Hurricane Insurance Protection-Wind Index (HIP-WI)?

You can not have ECO and HIP-Wi on the same crop policy, but you can have SCO and HIP-WI together.  For fall crops, we generally recommend ECO over HIP-WI, as we’re unlikely to see a hurricane or tropical storm while wheat, barley, or oats are in the ground.  

Our recommendations for spring crops vary by county and location.  Eastern counties are far more likely to see a major hurricane/tropical storm than western counties and should rely more on HIP-WI than ECO.  Combining SCO and HIP-WI will reduce the possible HIP-WI payment to 9% of your crops value, but it allows you to diversify your chance of an indemnity by insuring against the county and hurricane events as well as having an underlying policy that insures your production and revenue.  Consult with your agent to find out what’s best for your operation.

Who is ECO and SCO right for?

Our first recommendation is always to use your premiums to make sure that your underlying policy has adequate coverage to keep you in business if your personal crop fails.  If there is still room in your budget for additional coverage, consider ECO for fall crops and HIP-WI for spring, then consider adding SCO to both/either for additional county level insurance.

When is the deadline to sign up for ECO and SCO?

You must sign up for ECO and SCO by the sales closing date for the underlying crop policy.  In the southeast, this is typically September 30th for fall crops and February 28th for spring crops, but dates may vary  in some states for some crops. Consult with your agent for exact deadlines.

When can I expect to receive an ECO or SCO payment in a crop year that a loss is triggered?

Perhaps the biggest downside of ECO/SCO is how long it takes to receive a loss payment in a triggered year.   Unlike your underlying MPCI policy that pays as soon as an adjuster can evaluate your crop, ECO/SCO will almost never pay soon enough to help cover your costs in a poor year.  Since coverage is based on the county’s average production/revenue, it is often summer of the following year after harvest that indemnity checks are sent out.  For this reason, we encourage growers to consider ECO/SCO as a long-term investment tool rather than typical insurance. 

Foothills Crop Insurance is a family owned insurance agency with over 85 years of combined experience. We’re experts in tailoring policies to fit grower's operation and budget.Contact us today, and let our family take care of you like you’re one of us!  800-660-8674