Specialty producers have often been underserved by federal crop insurance programs.
Recognizing the discrepancy, the U.S. Department of Agriculture’s Risk Management Agency (RMA), which administers federal crop insurance, recently announced the expansion of the Enhanced Coverage Option (ECO) to better serve producers. The expansion offers farmers who provide fruits, vegetables, nuts, and other agricultural products additional coverage at a reduced cost, giving them better protection for their operations in the event of crop or revenue losses.
The ECO works as a boost to existing crop insurance policies. It can be added as an endorsement, or specific additional coverage, to policies such as Yield Protection, Revenue Protection, and Actual Production History. It can increase a producer's maximum coverage level, often 85% of their expected yield or revenue, to 90% or 95%. This coverage differs from the main policy, however, as it is based on county data rather than a producer’s individual yield or revenue. If county levels on the given crops are lower than the expected yields or revenue set at the start of the season, the farmer will receive an additional claim payment. This is true even if they did not have the same loss as their neighbors.
Expansion of the ECO will begin in 2025, with almonds, apples, blueberries, grapes, and walnuts becoming eligible for coverage. Citrus crops will be added in 2026. RMA is also covering 65% of the premium costs—an increase from previous years, which ranged between 44% and 51%—to make this protection more affordable.
While the ECO works differently than most crop insurance coverage, it provides an added level of protection for producers at an affordable price to help ensure they can continue farming in years to come.
