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Federal crop insurance coverage gets an update for 2026

A crop insurance specialist says federal crop insurance will expand coverage and subsidy levels for crop farmers starting in 2026.

Rob Fronning with AgCountry Farm Credit Services says subsidy levels for the Enhanced Coverage Option, Supplemental Coverage Option and Margin Coverage Option have increased to 80 percent.

“The subsidies would be happening on those products specifically,” he says. “Going beyond that, 2027 is when we’ll see the SCO product expand from an 86 percent coverage level to 90 percent coverage.”

Fronning says the changes make these programs less expensive to farmers, which could generate more interest.

“We’ve heard interest from farmers in trying to understand how it works. We’re not necessarily to the buying point yet, but we will be soon. The Margin Coverage Option or MCO has a sales deadline of September 30.”

He says farmers can also enroll in the Ag Risk Coverage program and have SCO insurance, which wasn’t allowed before. However, he says farmers can’t purchase ECO insurance and MCO insurance at the same time.

There is also enhanced crop insurance support for beginning farmers and ranchers in their first 10 years farming, making coverage more affordable.

“They’re doing an increase in subsidies, but they’re also stair stepping it down,” he says. “For example, the first two years, young farmers will get a 15 percent added subsidy on top of the subsidy posted for everyone else. On year three, it’s 13 percent. Year four, it’s 11 percent. And years five through 10 will be a 10 percent subsidy up and above the normal subsidy the general farmer will recieve.”

These crop insurance updates were included in the One Big Beautiful Bill Act, signed into law in July. USDA’s Risk Management Agency says it will provide additional guidance on other provisions as implementation details are finalized.

Hear the interview.