Supplemental Coverage Option (SCO)
Quick Facts
What is SCO?
The Supplemental Coverage Option is a crop insurance option that offers extra coverage for part of your crop insurance deductible. It can be added to Yield Protection, Revenue Protection, or Actual Production History policies.
Sales Closing Date
The deadline to sign up for SCO is March 15th.
Availability
Click here to see if SCO is available in your county:
Payments
SCO payments are determined only by county average revenue or yield, and are not affected by whether you receive a payment from your underlying policy. It is possible to experience an individual loss but to not receive an SCO payment, or vice-versa.
Subsidy
Starting in 2026, the federal government will pay for 80% of the policy.
Coverage Level
Coverage Level is your underlying Revenue Protection percent up to 86%. For example, if your RP Coverage Level is 75% you will have an 11% band of coverage from (86% - 75%).
Farm Program
Starting in 2026, you can sign up for both SCO and either ARC or PLC at the FSA.
Crops
SCO is available for Corn, Soybeans, Wheat, Sorghum, Barley, and Rice
Coverage
SCO follows the coverage of your underlying policy. If you choose Yield Protection, then SCO covers yield loss. If you choose Revenue Protection, then SCO covers revenue loss.
SCO Indemnity Example
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Projected Price - $4.56
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Harvest Price - $4.10
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Expected Area Yield - 167
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Expected Area Revenue - max($4.56, $4.10) x 167 = $761.52
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Final Area Yield - 155
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Final Area Revenue - 155 x $4.10 = $635.50
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Area Loss Trigger - 86% (Coverage Range is 11% (86% - 75%)
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Share - 100%
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Coverage Percentage - 100%
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Liability Underlying Policy- $250,000
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Coverage Level Underlying Policy - 75%
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*SCO payments start when county average revenue drops below 86% of expected levels, with full coverage paid out when it reaches 75%.*
Step 1. Determine SCO Protection
*Expected Crop Value = Liability of Underlying MPCI Policy divided by Coverage Level ($250,000 / 75%)
*Coverage Range = 86% (Area Loss Trigger) - 75% = 11%
Expected Crop Value x Coverage Range x Coverage Percentage = SCO Protection
($250,000 / 75%) x 11% x 100% = $36,667
SCO Protection = $36,667
Step 2. Actual Loss Trigger
Divide the final area revenue by the expected area revenue (from actuarial documents) and shown above.
$635.5 / $761.52 = .9375
Step 3.
Subtract the result of Step 2 from the Area Loss Trigger (86%), with a result not less than zero or greater than the coverage range.
.86 - .8345= .0255
Step 4. Payment Factor
Divide the result of Step 3 by the coverage range to determine the payment factor.
.0255 / .11 = .2318
Step 5. Indemnity Payment
Multiply the amount of SCO protection
(Step 1) by the payment factor (Step 4) to determine the indemnity.
.2318 x $36,667 = $8499.41