Federal crop insurance covers up to 85% of expected revenue. That leaves a 15% uninsured gap, which can be the difference between a manageable loss and a catastrophic one.
Supplemental coverage products—SCO and ECO—are designed to fill exactly this gap. The Assure Group helps farmers determine whether supplemental coverage makes financial sense and how to integrate it with existing federal policies.
Supplemental coverage isn’t a separate policy; it’s an additional coverage option that works alongside your underlying federal crop insurance (Revenue Protection or Yield Protection).
Federal crop insurance = Coverage up to 85% of expected revenue
Supplemental coverage = Coverage for the gap between 85% and higher levels (up to 95%)
Key benefit: Supplemental coverage is heavily subsidized and usually more affordable than increasing your base coverage level.
SCO is a county-level, area-based endorsement that adds revenue protection on top of your individual federal policy.
Area-based trigger – Pays when county-wide losses occur
Covers the gap – Protects between 86% and 95% of expected revenue
Affordable premium – Lower cost than raising individual coverage
65% premium subsidy – Makes protection cost-effective
If you have an 85% RP policy and add SCO at 90% county coverage, SCO pays on the gap between 85% and 90% if the county revenue falls below 90%.
Setup: Underlying RP policy: 85% coverage; SCO endorsement: 90% county coverage; Expected county revenue: $1,000/acre
Scenario: County actual revenue: $840/acre (84% of expected)
Payment: SCO pays the difference between your 85% guarantee and 90% trigger based on county results
SCO payments are based on county performance. If your farm suffers losses but the county does not, SCO does not pay.
ECO is similar to SCO but provides individual farm-level coverage based on YOUR farm’s performance.
Individual coverage – Pays based on actual production
Covers the gap – Protects between 86% and 95% of expected revenue
Higher premium than SCO but still subsidized at 44–65%
More precise protection – Not dependent on county results
If you have an 85% RP policy and add 95% ECO coverage, ECO pays when your farm revenue falls between 85% and 95% of expected revenue.
| Feature | SCO | ECO |
|---|---|---|
| Coverage Basis | County average | Individual farm |
| Premium Cost | Lower | Higher |
| Subsidy Rate | 65% | 44–65% |
| Payment Precision | Less precise | More precise |
| Best For | Farms tracking county averages | Farms with unique characteristics |
Even with 85% federal coverage, the uninsured 15% gap can be significant.
Example: 1,000 acres corn, $1,000/acre expected revenue → $1,000,000 total revenue.
Federal coverage pays to $850,000; $150,000 remains uninsured. If actual revenue falls to $750,000, the farmer loses $100,000.
Adding 90% supplemental coverage increases the guarantee by $50,000, reducing out-of-pocket loss from $100,000 → $50,000.
This margin can be critical for financial survival.
Analyze Historical County Performance – Does your farm track county averages and do losses occur frequently enough to justify SCO?
Calculate Premium vs. Protection ROI – Evaluate cost vs. potential payout and risk tolerance
Model Past Scenarios – How would supplemental coverage have performed over the last 10 years?
Consider Financial Position – Can you absorb the uninsured gap? Is the premium cost manageable?
Yes. Supplemental products are designed to work on top of your base federal policy.
You can only select one. SCO offers affordability and county-based coverage, ECO provides individual farm protection.
By the same sales closing date as your underlying federal policy (e.g., March 15 for spring crops).
SCO pays based on county results; ECO pays based on your individual farm results. Both integrate seamlessly with your federal policy.
SCO pays based on county losses. ECO only pays if your individual farm experiences a loss.
No. You must have an underlying RP or YP policy at 65% or higher coverage level.
We analyze your farm's historical yields against county averages to determine if SCO is suitable.
We calculate exact cost-benefit ratios for supplemental coverage tailored to your farm.
We ensure your supplemental coverage works seamlessly with federal and private policies.
We guide you through claims for both your base policy and supplemental coverage simultaneously.
Supplemental coverage is a powerful tool, but it’s just one piece of comprehensive farm risk management.