Focus on Ag: SCO Insurance Coverage Considerations for 2023

By Kent Thiesse

As has been often said with farming, every year is different, and 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 with considering Supplemental Coverage Option (SCO) insurance coverage for corn in 2023 SCO insurance coverage has been around for several years but has not been considered on a widespread basis due to the reduced potential benefits from SCO coverage However, that scenario may be different this year due to the price spread between the potential spring price for crop insurance coverage versus the Ag Risk Coverage (ARC) benchmark prices

Details on SCO Insurance Coverage

SCO coverage is only available to producers that choose the Price Loss Coverage (PLC) farm program option for the 2023 crop year and is not available for farmers that choose ARC coverage with county yields (ARC-CO) or ARC coverage with farm yields (ARC-IC) The PLC farm program option is price only, and the 12-month average price for a crop needs to drop below pre-set reference prices in order to earn a farm program payment The payment calculations for the ARC-CO program calculations are based on a pre-set benchmark revue (benchmark price and average county yield) and the final 2023 revenue (county average yield times the 12-month average price)

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