Exploring Optional Crop Insurance Coverages for Iowa Farmers in 2025: Yield Optimizer, SCO, ECO, and Margin Protection

As an Iowa farmer looking to buy federal crop insurance for corn and soybeans in 2025, you have several optional coverages available in addition to the standard federal crop insurance plans:

1. AcreShield’s Yield Optimizer:

AcreShield offers a new product called Yield Optimizer, which aims to cover the “yield gap” between 85% and 100% of your historical average yield. This product uses AI-driven seed selection and provides guaranteed ROI performance. It can pay up to $100 per acre if your yields fall into this gap.

2. Supplemental Coverage Option (SCO):

SCO is a county-level insurance product that adds coverage over your underlying crop insurance product up to an 86% coverage level. You can purchase SCO along with ECO. SCO is only compatible with the Price Loss Coverage (PLC) Farm Service Agency (FSA) program. If you intend to purchase SCO, you must register for PLC instead of Agricultural Risk Coverage (ARC) at the FSA office. 

3. Enhanced Coverage Option (ECO):

ECO provides additional area-based coverage from 86% up to either 90% or 95%, based on county-wide outcomes. It offers the highest subsidized Multi-Peril Crop Insurance (MPCI) coverage available, with the government paying 65% of the premium.

4. Margin Protection (MP):

Margin Protection provides coverage against unexpected decreases in your operating margin (revenue less input costs). It’s an area-based plan using county-level estimates of average revenue and input costs. MP can be purchased standalone or in conjunction with Yield Protection or Revenue Protection policies. This product must be purchased by September 30^th for the following year’s crop.

It’s important to note that the performance of these optional coverages can vary. For example, SCO and ECO had very low payments relative to premiums in Midwest states from 2015 to 2023, particularly in regions with low yield variability. Consult with a crop insurance agent to discuss these options, as the sales closing date is typically March 15th for spring-planted crops in Iowa.