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The U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA) announced this month it is introducing a new margin coverage option as a crop insurance endorsement for corn, cotton, grain sorghum, rice, soybeans and spring wheat in select states for 2026 and succeeding crop years.

MCO provides growers with area-based coverage against an unexpected decrease in operating margin (revenue minus input costs) caused by reduced county yields, reduced commodity prices, increased prices of certain inputs or any combination of these perils, .

MCO provides a band of coverage from 86% or 90% to 90% or 95% of the expected crop value. MCO begins to pay when area margin falls below 90 or 95% of the expected margin depending on which MCO trigger is selected.

Any indemnities owed will be paid when final county yields are available, in the spring of the follow year, USDA’s fact sheet says.

MCO will be available for six crops: corn, soybeans, cotton, grain sorghum, rice, and spring wheat. The area covered by this MCO pilot will be select counties in the following states:

• Corn and Soybeans: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin.
• Cotton and Grain Sorghum: Kansas, Oklahoma and Texas.
• Rice: Arkansas, California, Louisiana, Mississippi, Missouri and Texas.
• Spring Wheat: Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota and Washington.

The sales closing date for corn, cotton, grain sorghum, soybeans and spring wheat is Sept. 30. The sales closing date for rice varies by state.

Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available online at the .

Source: USDA

Topics Agribusiness