Federal Crop Insurance for Row Crops
Every serious grain and row crop operation buys crop insurance every year. The federal government pays roughly 60% of your premium. But the choices — Revenue Protection vs. Yield Protection, coverage level, unit structure, endorsements — are genuinely complex, and getting them wrong costs real money.
How Federal Crop Insurance Works
Crop insurance is a public-private partnership. USDA's Risk Management Agency (RMA) designs the products and subsidizes your premium. Private Approved Insurance Providers (AIPs) deliver the policies through licensed agents.
Key fact: Because policies are federally standardized, the price is identical regardless of which agent or AIP you use. What differs is the quality of advice. In 2024, roughly 89% of major field crop acreage was enrolled.
Decision 1: Revenue Protection vs. Yield Protection
Revenue Protection (RP) — ~90% of row crop acres
Protects when yield drops OR price drops OR both. Your guarantee uses the higher of the projected spring price or the harvest price. If corn is projected at $5.00 but drops to $4.00 by harvest, you're still protected at $5.00.
Yield Protection (YP)
Covers yield loss only at the spring price. Cheaper premiums but no price protection. Almost never the better choice for row crops.
Decision 2: Coverage Level
Choose 50% to 85% of expected revenue to insure.
Corn example: 180 bu/acre APH, $5.00/bu projected = $900/acre expected revenue
75%: Guarantee = $675/acre. 80%: $720/acre. 85%: $765/acre.
Premium subsidy: ~67% at 65% coverage, ~38% at 85%. Higher coverage costs more AND you pay a larger share.
Most Midwestern corn/soybean producers choose 75%–85%.
Decision 3: Unit Structure
Enterprise Units: All acreage of one crop in one county combined. Biggest premium discount (15–20% less). The default for most large operations. Trade-off: localized losses get averaged out.
Basic Units: Split by ownership. Higher premiums, but targeted loss payments.
Optional Units: Split further by section. Most expensive, most granular.
Decision 4: Endorsements — SCO and ECO
SCO: Covers the band between your individual level and 86% of county expected revenue. Under OBBBA, SCO is now decoupled from ARC/PLC elections.
ECO: Covers 86% to 90% or 95% of county revenue. Now has 65% premium subsidy (up from 44%). Some producers see 6:1 premium-to-liability ratios.
County correlation matters. SCO/ECO pay on county-level losses. Works well if your yields track the county. Ask your agent for the historical correlation.
Your APH — The Number That Drives Everything
Actual Production History: your 4–10 year yield average. Always report production even in good years (missing reports drag down your APH). Ask about yield exclusion to remove bad years.
Key Deadlines
Sales closing: March 15 for spring crops. September 30 for winter wheat.
Acreage reporting: July 15 for spring crops.
ARC/PLC election: June 30, 2026 (mandatory under OBBBA).
What to Say When You Talk to Your Agent
“Before we lock in my policy, I want to walk through unit structure and endorsement options. Show me premium at 75%, 80%, and 85% — enterprise vs. optional units — and how SCO and ECO layer on top with the new subsidy rates.”
If your agent can't clearly explain these trade-offs, consider whether you're getting the advice your operation deserves.
Last updated: March 2026. Educational only — work with a licensed agent for your specific decisions. rma.usda.gov