Changes to the federal crop insurance program were announced late summer of 2025 as part of the One Big Beautiful Bill Act in an effort to offer more financial support to farmers. here are the highlights you need to know and how they can impact your crop insurance decisions.
Increased Crop Insurance Subsidies
Premium subsidy rates are increasing by as much as 5% across all levels. SCO, ECO, and MCO area plans have an increased subsidy level from 60% to 85%. New subsidy rates mean a better way for you to manage your risk at a price you can afford.
New Margin Coverage Option available for 2026
Similar to Margin Protection Coverage, Margin Coverage Option (MCO) is an area plan that allows producers to insure against a decline in expected margin due to a decline in yield, price, or an increase in input costs. This new policy works with your underlying crop insurance policy to offer you more comprehensive coverage options. Sales closing date for this policy is 9/30. More information can be found on our MCO product page HERE.
Area-Based Coverage Enhancements
In addition to the subsidy increase for SCO, ECO, and MCO, there are new product enhancements to area based plans. SCO is now available regardless of your program election in the FSA (previously unavailable for producers that elected ARC), and starting in 2027 will be available at the 90% coverage level. For more information on any of these products, click the links: SCO ECO MCO
Whole Farm Revenue Protection has an increase on the subsidy percentages for 75%-85% coverage levels for single commodity WFRP policies; and allow all eligible producers to qualify for a 90 percent coverage level. More information on WFRP can be found HERE.
Beginning Farmer & Ranchers (BFR)
BFR has been expanded to include producers with less than 10 years of farming or ranching experience. Subsidies have also been updated:
- 15 percentage points additional subsidy for the first two crop years
- 13 percentage points for the third crop year
- 11 percentage points for the fourth crop year
- 10 percentage points for years five through ten
For full BFR/VFR benefits, click HERE.