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An old crop insurance option has become more attractive to farmers

A crop insurance expert says more farmers are working on their crop insurance a little earlier, and many of them are making changes. 

Lucas Commey with Compeer Financial says the Farm Service Agency is prompting farmers to make their decisions about Ag Risk Coverage and Price Loss Coverage (ARC & PLC) sooner. “There’s a program called SCO or a policy called SCO, Supplemental Coverage Option, and there are some ties there, and that policy is very much in play this year so you’ve got to, based on your decision at FSA, determines whether you can take that policy or not, so we’re seeing some people coming in.”

Commey tells Brownfield the Supplemental Coverage Option has been around since the 2014 Farm Bill but required being in the PLC program. “And when the Farm Bill rolled out in 2014, the ARC county program was a better option. They were guaranteed payments. It was known, and so most farmers went into that program for good reason, so, that took SCO off the table. Well now, as the ARC county doesn’t look as good, people are now looking at SCO because it’s a better option.”

And, he says the Supplemental Coverage Option has a higher subsidy, which makes it affordable for farmers and a good option to discuss with crop insurance agents.

Commey says with input costs so high, there is a lot of incentive to act early to protect what is expected to be the most expensive crop ever planted.

Commey spoke to Brownfield during the recent Wisconsin Corn-Soy-Pork Expo in Wisconsin Dells.