USDA Increases Premium Support for SCO and ECO Crop Insurance, Reducing Costs for Farmers
The One Big Beautiful Bill (OBBB) Act, passed in July 2025, has significantly increased the premium support for Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO) crop insurance policies from 65% to 80%. This legislative change, announced by the Risk Management Agency of the USDA, aims to reduce the cost of insurance premiums for farmers starting in 2026. The act also allows farmers to choose the Agriculture Risk Coverage (ARC) program without affecting their eligibility for SCO, providing more flexibility in their insurance options. The coverage level for SCO has been increased from 86% to 90%, although this will not take effect until the 2027 crop year. These changes are expected to lower farmer-paid premiums and increase federal outlays for these insurance products. 
