By Clint Schroeder and Eric Richer
With the projected price discovery period now closed for winter wheat Ohio farmers have until September 30, 2025, to select the crop insurance coverage that best suits their operation. However, the decision on policy type and coverage levels for 2026 crops could be impacted by the passage of the One Big Beautiful Bill Act (OBBBA). Signed into law on July 4, 2025, OBBBA offers higher area-based policy coverage levels, increases premium support, and expands support for beginning farmers and ranchers. This article will highlight these key changes so that producers can make more informed decisions for 2026 production on their farm.
Previously, producers that wanted to purchase Supplemental Coverage Option (SCO) as part of their policy were required to enroll those base acres in the Price Loss Coverage (PLC) program. The OBBBA has decoupled SCO from the traditional Farm Bill decision allowing farmers to enroll in either the Agriculture Risk Coverage (ARC) or PLC program. Additionally, premium support, the subsidy for SCO has increased from 65% to 80%. In 2027 SCO coverage will also increase to 90%, up from the current 86% revenue benchmark. This band of coverage is currently available in the form of the Enhanced Coverage Option (ECO). ECO is currently available at two coverage levels, 86% to 90% and 90% to 95%. The premium support for these policies also increased to 80%. It is important to note that SCO and ECO provide coverage above the individuals’ underlying Multi-Peril Crop Insurance (MPCI) policy but are based off of the county’s production for that year. That is to say, SCO and ECO do not provide additional protection at the unit level for each farm, field and crop.
Source : osu.edu