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Crop insurance has evolved significantly over the last few decades, and one big development for farmers was the launch of the federal Enhanced Coverage Option (ECO) in 2021¹.

As the name suggests, ECO builds on top of existing multi-peril crop insurance (MPCI) to give farmers an added layer of protection. The coverage is based on county-level crop production, meaning that if yields are impacted by adverse growing conditions in your area, you can get a return on losses. By comparison, MPCI coverage is based on your own operation’s production, so adding ECO gives you broad protection against losses both on your own farm as well as across your county. ECO can also kick in when yields fall below 95% of the county average, while MPCI coverage only extends to 85%. The added range of protection provides farmers with greater peace of mind.

Of course, as with any type of insurance, the cost of coverage can be a key factor in whether you decide to buy the product. Thankfully for ag operators, ECO recently became more affordable due to an increase in federal subsidies. Starting with the 2025 crop year, the government now pays 65% of the cost for ECO, up from the previous 44% subsidy². This makes now a great time to explore policy options, and you can talk to an experienced ag insurance advisor for more details on what’s available in your area. Like with MPCI, there is a March 15 deadline to elect ECO coverage.

Other considerations for your ag insurance this year

Depending on your operation, other types of insurance should be on your radar during the first few months of the year. This is prime crop insurance renewal season, and locking in the right coverage now is critical in setting you up for success in the busier months ahead.

One policy that is garnering increased attention is Livestock Risk Protection (LRP). Another federal program offered through the U.S. Department of Agriculture, LRP is designed to protect against market volatility and allows producers to set a floor price for their livestock. A bullish cattle market is driving interest in the product, because producers can lock in their policies with elevated prices. If the market cools and prices drop, LRP offers indemnity payments based on the chosen coverage price. This makes it important for producers to take action while the market remains hot.

As always, working with an experienced ag insurance team is your best bet in navigating the insurance marketplace and choosing the right solutions for your operation.