Supplemental Coverage Option

What is the Supplemental Coverage Option (SCO)?

SCO is an optional crop insurance endorsement designed to enhance your existing policy by covering a portion of your deductible. It works alongside standard policies such as Yield Protection, Revenue Protection, Revenue Protection with Harvest Price Exclusion, or Actual Production History (APH) policies where revenue coverage is unavailable.

A key advantage: the Federal Government subsidizes 65% of the SCO premium, making it a cost-effective way to strengthen your risk management strategy.

How do I purchase SCO coverage?

SCO is added as an endorsement to your base crop insurance policy and must be selected by your policy’s sales closing date with the same insurance provider.

Keep in mind that SCO is not available for crops enrolled in the Agriculture Risk Coverage (ARC) program for the same farm.

How does SCO work?

SCO mirrors the type of protection you select in your underlying policy:

• Yield Protection → covers yield losses
• Revenue Protection → covers revenue losses

However, SCO differs in how losses are triggered:

• Your underlying policy pays based on individual farm losses
• SCO pays based on county-level performance

This means you may receive an SCO payment even if your individual farm doesn’t experience a loss—or vice versa.

When does SCO pay out?

SCO provides coverage within a defined band:

• Payments begin when county results fall below 86% of expected levels
• Full payouts occur when results fall to your underlying policy’s coverage level

Example:

• If your base policy covers 75%, SCO covers the band from 86% down to 75%
• That equates to 11% additional coverage

This structure helps fill a significant portion of your deductible gap.

How much coverage does SCO provide?

The amount is based on:

• Your underlying policy’s liability
• Coverage level
• Approved yield

You can also customize your protection by selecting a coverage percentage (50%–100%) of the SCO band.

Example:

• Full SCO coverage might equal $84.15 per acre
• Choosing 50% coverage provides $42.08 per acre

This flexibility allows you to tailor coverage to your risk tolerance and budget.

How much does SCO cost?

Your premium depends on several factors:

• Crop and county
• Underlying policy coverage level
• SCO coverage percentage
• Type of protection (yield vs. revenue)

However, the government covers 65% of the premium, significantly lowering your out-of-pocket cost.

Is SCO right for my operation?

SCO is ideal for producers who want to:

• Reduce deductible exposure
• Add an extra layer of financial protection
• Enhance overall risk management

The best option depends on your specific crops, location, and risk profile—your crop insurance agent can help you tailor the right solution.

Where is SCO available?

SCO is offered across many crops and regions and continues to expand. It has been available since 2015 for crops including:

• Corn
• Soybeans
• Wheat
• Cotton
• Rice
• Sorghum

Availability tools and maps are provided through USDA Risk Management Agency (RMA) resources.

What happens if I enroll in both SCO and ARC?

You cannot use both programs for the same crop on the same farm:

• If ARC is selected, SCO coverage is cancelled for that crop
• You may still owe a portion of the SCO premium
• Your underlying crop insurance policy remains active

Proper reporting is essential to avoid penalties or lost eligibility.

Why choose SCO?

SCO offers:

• Affordable supplemental protection
• Meaningful deductible coverage
• Flexible customization
• Strong federal premium support

It’s a powerful tool to help safeguard your operation against uncertainty.