Farmers Weigh MCO vs ECO Crop Insurance Options

Farmers have until September 30 to elect coverage for the Margin Coverage Option (MCO), a new crop insurance option that uses changes in county revenue and input costs to determine losses.

According to Jake Moline, risk management consultant with StoneX, the early price guarantee is one reason farmers may want to understand how MCO compares with the Enhanced Coverage Option (ECO).

MCO has already established projected prices of $5.25 per bushel for corn and $12.33 per bushel for soybeans for 2027, while ECO won't establish its projected price until February.

A comparison by Moline shows that in years when the MCO price exceeded $5 for corn or $12 for soybeans, the average advantage of MCO over ECO was $17.66 per acre for corn and $7.29 for soybeans.