As has often been said with farming, “every year is different.”
Many times, decisions for the current crop year are based on what happened in the previous year or two. That could be the scenario in some cases, considering the various crop insurance options for 2026, especially with recent upgrades to the Enhanced Coverage Option and Supplemental Coverage Option insurance coverage options.
The “One Big Beautiful Bill” that was passed by Congress in 2025 increased the federal subsidy rate on all levels of crop insurance, including SCO and ECO coverage, which should result in more reasonable premiums for most insurance options in 2026. The legislation also allows SCO coverage to be available with both the Price Loss Coverage and Ag Risk Coverage farm program options, which makes SCO a more viable part of a risk management package. The deadline to purchase crop insurance for corn and soybeans for the 2026 crop year is March 17.
Producers have several crop insurance policy options to choose from, including yield-only and revenue protection policies, SCO and ECO policies, and other private insurance options. In recent years, most farm operators have chosen revenue protection insurance options, which provide a guaranteed gross revenue per acre (yield x price). This guarantee is based on yield history on a farm unit times the spring base price, which is the average of the Chicago Board of Trade prices during the month of February for December corn futures and November soybean futures. Harvest prices for corn and soybeans utilize the same futures prices, which are averaged during October. SCO and ECO insurance coverage utilize the same spring price and harvest price as the revenue protection policies; however, those policies are based on county average yields rather than on farm yields.
As of Jan. 26, the 2026 crop insurance spring price estimates in the upper Midwest were estimated near $4.55 per bushel for corn and near $10.80 per bushel for soybeans. The 2026 spring prices will be finalized on March 2. The current 2026 Spring price estimates compare to recent base prices $4.70/bu. for corn and $10.54/bu. for soybeans in 2025; $4.66/bu. for corn and $11.55/bu. for soybeans in 2024; $5.91/bu. for corn and $13.76/bu. for soybeans in 2023; and $5.90/bu. for corn and $14.33/bu. for soybeans in 2022. The final 2026 crop revenue will be the crop insurance harvest price times the actual farm yield for RP policies, and times the final county average yield for SCO and ECO policies.
Choosing crop insurance coverage is one of the more important risk management decisions that producers make each year. The following are some key items to consider when making 2026 crop insurance decisions:
There are a wide variety of crop insurance policies and coverage levels available. Make sure you are comparing “apples to apples” when comparing crop insurance premium costs for various options or types of crop insurance policies, as well as recognizing the limitations and the differences of the various insurance products. Crop insurance premiums in 2026 for most coverage levels for corn and soybeans in the Midwest should be slightly less than 2025 premium levels for comparable insurance coverage; however, this will depend on the final spring base price and the volatility level.
View crop insurance decisions from a risk management perspective.
Given the continued higher crop input costs and tighter profit margins for the 2026 crop year, it may be very important to have adequate crop insurance coverage. A producer must decide: “How much profit margin reduction or potential loss per acre do I want to risk if there are greatly reduced crop yields due to potential weather problems in 2026, and/or lower than expected crop prices by harvest time ?”
Take a good look at the 80% or 85% coverage level for added risk protection.
In many cases, the 80% and 85% coverage levels offer considerably more protection, with a modest increase in premium costs. Many producers will be able to guarantee near $700 to over $900 per acre for corn, and near $450 to over $600 per acre for soybeans, at the 85% coverage level for 2026.
Use caution when considering RPE insurance policies to reduce premium costs.
If the “harvest price” (average CBOT price in Oct.) for corn or soybeans is lower than the spring (base) price, then the RP and RPE payment calculations function similarly, providing an advantage to RPE due to the lower premium costs. However, if the final “harvest price” exceeds the spring price, which has occurred several times in the past, RPE policies will have much lower potential for indemnity payments than comparable RP policies, adding considerable risk to an RPE policy.
Consider the advantages of “Optional Units” vs. “Enterprise Units.”
Even though the premium cost to insure with “optional units” is higher than purchasing crop insurance with “enterprise units”, in many instances it has been worth the added investment for “optional units”. If a farm operator has several farm units that are spread out, with a fairly wide range of soil types and APH yields, “optional units” usually provide a more comprehensive risk management approach in instances of drought, hail, excessive rain, and other weather disasters.
Supplemental Crop Option insurance is available regardless of the farm program choice.
New for 2026: The Supplemental Coverage Option (SCO) coverage will be available to producers who choose either the Price Loss Coverage (PLC) and the Ag Risk Coverage (ARC-CO) farm program option for the 2026 crop year. The premium subsidy for SCO insurance has been increased to 80 percent for 2026. SCO coverage allows producers to purchase additional county-level crop insurance coverage up to a maximum of 86 percent coverage in 2026, which will increase to 90 percent coverage in 2027. For example, a producer that purchases an 80% RP policy for corn or soybeans could purchase an additional 6% SCO coverage in 2026. SCO coverage utilizes county average yields.
The Enhanced Coverage Option is another insurance option to increase coverage levels.
ECO provides area-based insurance, allowing producers to increase their coverage from 86% up to either 90 or 95% coverage. The ECO insurance premium subsidy for 2026 is 80% on 90% coverage and 65% on 95% coverage. Both ECO and SCO are area-based insurance policies that utilize county-level yields together with typical crop insurance prices. Final county average yields for corn and soybeans are not known until May, so any ECO and SCO indemnity payments are not paid until June in the year following harvest. Producers can utilize both ECO and SCO together, in addition to their underlying RP or YP insurance policy. For example, a producer could have an 80% RP policy, carry SCO coverage from 80 – 86%, and carry ECO coverage from 86% to either 90 or 95%. It is possible for a producer to collect on a SCO or ECO policy, but not on an individual RP policy, or vice versa.
Evaluate other “buy-up” crop insurance options.
In addition to the government subsidized SCO and ECO county-based insurance products that allow insurance coverage up to 95% coverage, there are also “buy-up” private policies using farm-level yields up to 90 or 95% coverage. Private companies also offer separate wind and hail insurance endorsements. Of course, any of the “buy-up” or “add-on” insurance options add to the total premium cost. Producers need to ask: “What mix of crop insurance products provides me with the desired risk protection for my 2026 crop investment at a premium amount that I am willing to spend?”
Where to get more information on 2026 crop insurance alternatives.
Farmers should contact their crop insurance agent for details, premium quotes, and spreadsheets on various crop insurance coverage options, including ECO and SCO coverage. Kent Thiesse, Farm Management Analyst, has prepared an information sheet that includes examples, which is titled: “2026 Crop Insurance Decisions.” To request a free copy of this information sheet, send an e-mail to:
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Kent Thiesse is a Farm Management Analyst . Contact him by phone at (507) 381-7960 or by email at kentthiesse@gmail.com.
