💸 ECO & SCO Just Hit – Here’s What That Means for Your Wallet💸

ByMike Rydell Reading Time: 3 minutes

One day you’re tracking calves or chasing weeds… and the next, your crop insurance just made it rain. 🌧️💰

Yep—it’s that time of year. RMA dropped the final area yields for 2024, and if you’re covered under ECO or SCO in Montana or the Northern Plains, you might be looking at a hefty insurance payout headed your way.

In this special edition of The Crop Insurance Podcast, Mike Rydell broke it all down in plain English. (The kind you can understand while checking your fences or sipping coffee in the shop.) So let’s dive in—and trust us, you’ll want to read this before your neighbor asks, “Did you get paid?”

🧠 First Off… What Are ECO and SCO Again?

We get it—acronyms are everywhere in ag. So let’s recap:

  • SCO (Supplemental Coverage Option) fills the gap between your base policy (like 75% or 80% coverage) and 86%.
  • ECO (Enhanced Coverage Option) goes even higher—covering from 95% down to 86%.

Basically, they’re area-based add-ons that protect you against widespread losses—like falling prices or weather-related yield hits across your whole region. And guess what? That’s exactly what happened this year.

📉 The 2024 Recipe: Decent Yields, Ugly Prices

Let’s talk numbers. Take Cascade County, Montana for example:

  • 📊 Expected yield: 53 bu/acre
  • 🌾 Final yield: 56.6 bu/acre
  • 💰 Projected price: $7.38
  • 📉 Harvest price: $5.45
    (That’s a 26.2% price drop—oof.)

Even though the yield was decent, revenue took a nosedive. And when revenue drops, ECO and SCO kick in (if you have Revenue Protection on your underlying policy) because they care about dollars, not just bushels.

🧮 Do the Math (Or Let Us Do It for You)

To find out if you’re getting paid:

  1. Adjust your final yield for price drop
    → 56.6 bu x (1 – 0.262) = 41.78 bu
  2. Compare it to your expected yield
    → 41.78 ÷ 53 = 78.8% of expected revenue

Since ECO pays down to 86%, and you’re below that at 78.8%, you’re in payout territory. 🎯

✅ So What Does That Mean for You?

  • If you had ECO: Full payout.
  • If you had SCO:
    • 80% policy? You get the full 6% band from 86 to 80%.
    • 70% policy? You still get a partial payout from 86 to 78.8%.

💡 Bonus Tip: Your crop insurance agent should be calling you with the heads-up. If they’re not, this is your sign to find someone who will.

📥 Fast Payments? Sign Up for ACH

If you’re set up for direct deposit, those dollars could hit your account in days—not weeks. That’s a big deal in May when input bills, fuel, and hail coverage are all on your mind.

🎯 For Farmers: What You Can Do Now

  • Log in to RMA’s Actuarial Info Browser.
  • Run the numbers for your county.
  • Review your Summary of Coverage to confirm ECO/SCO enrollment.
  • Still not sure? Call your agent—or maybe interview a new one. 😉

🧑‍🌾 For Agents: Be the Hero

Mike’s advice? Be proactive. This is your moment to shine:

  • Call your clients before they call you.
  • Don’t just send emails—walk them through the math.
  • Be the agent who helps them sleep better tonight.

Final Thought: This Is Why We Buy It

Crop insurance isn’t about doomsday—it’s about managing risk and protecting your livelihood. And in years like this, ECO and SCO prove their value.

So go ahead and breathe a little easier. Whether it’s funding next season’s fertilizer, covering a hail policy, or just padding the operating loan—your policy showed up for you.

Want to stay ahead of the game next time? Subscribe to The Crop Insurance Podcast.

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