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Abstract
Price declines for corn and soybeans continue to drive return expectations for the 2024 crop year lower and increase the likelihood of payments from crop insurance and commodity programs. Recent articles have examined prospects for individual crop revenue insurance and commodity program (ARC and PLC) payments (see farmdoc daily articles from August 6, 2024 and August 13, 2024).
Today’s article looks at payment scenarios for the Supplemental and Enhanced Coverage Option (SCO and ECO) policies which supplement a producer’s underlying individual coverage with additional area-based coverage. At current futures price levels, payments from ECO seem likely for 2024, particularly if county yields are not too far above trend yields. Area (usually county) yields at or above expected levels would negate payments from SCO at current price levels.