ECO
The USDA’s Risk Management Agency has announced positive changes to the Enhanced Coverage Option (ECO). In the past, ECO was subsidized at a lower rate of 44%. At this subsidy level, ECO was relatively expensive, and many times priced itself out of the market. Starting in 2025, ECO will be subsidized at 65% – making this coverage more affordable. So, let’s review what ECO is and how it could be valuable for your operation.
ECO is an additional coverage that can be purchased on top of your current crop insurance policy. This coverage is an area-based plan that covers the county’s revenue rather than using the individual farm’s performance. ECO can protect up to 95% of the county revenue versus the maximum 85% coverage on basic revenue protection. This helps reduce the “deductible” on your policy with area coverage and covers shallower losses. Essentially, it builds extra coverage on top of your base policy you already have.
While a county-based plan may not be attractive to every operation, this increased subsidy will make it more appealing across the country. If you are looking for additional coverage in 2025 and would like to know how ECO can work in conjunction with your current crop insurance policy, please contact our office.
New Break
Every year there are a number of acres that are converted from grassland to crop production. For 2025 RMA has set forth a few new rules regarding new breaking ground that are important to note.
- New breaking ground in defined as acreage that has not been planted and harvested at least 1 of the 4 previous crop years. For example, if you planted and harvested beans in 2020, then followed it up with a perennial grass for 2021-2024, but intend to plant beans in 2025, you will be subject to the new break rules.
- You are now required to insure all new breaking acreage and no written agreement is needed to do so. You will have until the acreage reporting date of July 15th to report these new breaking planted acres. Though you don’t have to notify us prior to planting these acres we encourage you to do so, so we can add the new field to your maps.
- For the first year of new break your approved yield will be 85% of the county average. For the years following your guarantee will be as if the ground has always been farmed.
These above changes only apply to new break acres that are more than 5% of your total planted acres per unit. For example, if you plant 150 acres of soybeans, but 5 of those acres are new break, you are not subject to the new break rules.
Do the new break rules apply to me?
