University of Maryland Extension

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

Paul Goeringer and Howard Leathers
Photo by Edwin Remsberg


            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 producers APH yield and price election. An SCO loss payment occurs when the county average actual yield (by NASS) is less than 86 percent of the actual county average yield. 

            SCO became available with the 2015 crop year in select Maryland counties for winter wheat, and all corn and soybean counties except Allegheny and Garrett.  USDA’s Risk Management Agency (RMA) will begin looking at expanding covered counties and crops covered, and begin distinguishing by practices (such as irrigated compared to non-irrigated).  

To continue reading, click over to the Maryland Risk Management Education Blog.

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