RMA · Crop Insurance

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.

Last updated March 2026

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. Roughly 89% of major field crop acreage is typically enrolled nationwide.

How Crop Insurance Is Delivered

The Federal Crop Insurance Corporation (FCIC), housed within USDA's Risk Management Agency (RMA), designs every crop insurance product and sets every premium rate. Private companies known as Approved Insurance Providers (AIPs) sell and service the policies. Your point of contact is a licensed crop insurance agent — someone who can help you select coverage levels, submit acreage reports, and file claims when losses occur.

Because RMA sets the rates, the premium for a given policy is identical no matter which agent or company sells it. There is no price shopping. The value an agent provides is in the quality of their advice: understanding your operation, running the numbers on different coverage and endorsement combinations, and making sure your APH and acreage reports are accurate. A good agent can save you thousands of dollars a year without changing your premium by a cent.

When a loss occurs, an AIP adjuster investigates the claim. Filing a claim does not cause your premiums to increase — crop insurance is not structured like auto insurance. Your premium is a function of your coverage level, your APH, the projected price, and your county's risk rating. Using the program when you have a legitimate loss is exactly what it's designed for.

New for 2026

The One Big Beautiful Bill Act (OBBB) made several significant changes to crop insurance. The SCO premium subsidy increased from 65% to 80% — meaning you may pay roughly 20 cents on the dollar for coverage that fills the gap between your individual policy and 86% of county revenue. SCO is now available to producers enrolled in ARC, where it was previously limited to PLC enrollees.

The beginning farmer benefit window doubled from 5 to 10 years. If you've been farming 6–10 years and assumed you'd aged out of enhanced premium subsidies, it's worth checking with your agent. Premium subsidies also increased at every coverage level across the board.

ARC's coverage guarantee went from 86% to 90% of benchmark revenue, and ARC/PLC elections are required for 2026 — check with your FSA office for the current enrollment deadline. Read the full OBBB guide →

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 OBBB, 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.

Look up current prices: You can find projected prices, harvest prices, and volatility factors for any covered commodity on the RMA Price Discovery portal. These are the prices RMA uses to calculate your revenue guarantee — worth checking before you lock in coverage.

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 OBBB).

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.

Your Next Steps

1. Review your current coverage level, unit structure, and endorsements

2. Ask your agent for a premium comparison at 2–3 levels with enterprise vs. optional units

3. Check your APH for accuracy and possible yield exclusion

4. Evaluate ECO at the new 65% subsidy

5. Make your ARC/PLC election by June 30 — use our calculator

Top federal crop-insurance counties, by state

Counties with the most row-crop acreage in each state — where RP, YP, and SCO/ECO endorsements see widest use.

Source: 2022 Census of Agriculture. Updated 2026-05-01.

Last updated: March 2026. Educational only — work with a licensed agent for your specific decisions. rma.usda.gov