The One Big Beautiful Bill (OBBB) Act, signed into law on July 4, 2025, introduces new opportunities for U.S. peanut producers to manage risk. This article explores the current crop insurance options available to peanut farmers and highlights how the new law expands these choices beginning crop year 2026.
Under the OBBB, peanut producers continue to have access to traditional deep-loss and shallow-loss programs, while also gaining access to a new combination of income protection tools: the Supplemental Coverage Option (SCO) and Agriculture Risk Coverage – County (ARC-CO). These programs are designed to help farmers safeguard their income against unexpected losses. This article provides a detailed look at these options and how they can benefit peanut producers.
Deep Loss Programs protect against significant losses, including complete crop losses. The Federal Crop Insurance Program (FCIP) for peanuts offers three farm-level insurance plans that fall into this category. These plans form the foundation of a peanut producer’s risk management strategy.
They are also referred to as the underlying policy that peanut producers can purchase to protect against potential losses. (1) Yield Protection (YP) insures against losses when yield falls below a selected coverage level due to natural disasters or other covered events. (2) Revenue Protection (RP) safeguards revenue when it falls below the selected revenue coverage level, either due to low yields, declining prices, or both. (3) Revenue Protection with Harvest Price Exclusion (RP-HPE) functions similarly to RP but does not increase the revenue guarantee if harvest prices rise above the projected price. This typically results in lower premium costs for producers.
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