Farmers Weigh Options for Crop Year 2027 Margin Coverage
The Margin Coverage Option (MCO) is an area-based crop insurance endorsement that provides protection against operating margin shortfalls for farmers. The decision to buy MCO for crop year 2027 must be made by September 30th, 2026.
For the 2027 crop year, the coverage band of MCO has been changed, now providing protection from 95% down to 90%. This change reflects the increase in Supplemental Coverage Option (SCO) coverage level from 86% to 90% starting in crop year 2027.
The projected prices for crops and inputs have been determined, allowing for premium calculations. The average fall projected price of corn is $5.25 per bushel, while soybeans are at $12.33 per bushel.
When deciding whether to purchase MCO for next crop year, farmers must consider the trade-offs, including the competition with Enhanced Coverage Option (ECO), which has a similar subsidy rate and average payments across most counties in the U.S. for corn and soybeans.