When it comes to renewing your crop insurance policy for 2026, it’s not business as usual. With sweeping changes in federal subsidies, crop insurance is essentially “on sale”—but that doesn’t mean every option is right for every operation.
We're here to help you make the most of these changes with a risk management plan tailored to your farm’s unique needs.
Premium subsidies for area-based plans like Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO) have increased to 80%, making higher levels of coverage more affordable than ever.
What’s new for 2026?
The 2026 crop year brings some of the most significant updates to crop insurance in years:
Premium subsidies for area-based plans like Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO) have increased to 80%, making higher levels of coverage more affordable than ever.
There are enhanced premium subsidies for Basic and Optional Units.
| Type | 50% | 55% | 60% | 65% | 70% | 75% | 80% | 85% |
|---|---|---|---|---|---|---|---|---|
| Optional Unit | 67% | 69% | 69% | 64% | 64% | 60% | 51% | 41% |
| Basic Unit | 67% | 69% | 69% | 64% | 64% | 60% | 51% | 41% |
| Enterprise Unit | 80% | 80% | 80% | 80% | 80% | 80% | 71% | 56% |
What this means for you
These changes open the door to new strategies, but they also require a fresh look at your current plan. Here’s why:
- It’s on sale. With higher subsidies, premiums are lower across the board. That means you may be able to afford more coverage or reallocate dollars for better protection.
- Adding an area plan might be a great way to supplement or enhance your individual coverage—but they’re not for everyone. These plans are based on how your county performs, not your individual yields. If your operation closely tracks county averages, you could benefit. If not, individual coverage may still be your best bet.
- Don’t just renew—review. Your cost of production, family living expenses, and working capital may have changed. Your insurance should reflect that.
- Avoid the temptation to cut coverage. With tight margins and sticky input costs, it’s tempting to reduce coverage to save money. But cutting coverage could expose your operation to more risk than your balance sheet can handle.
A smarter way to insure
We offer industry-leading technology that helps you:
- See how your yields correlate with county performance.
- Optimize your policy to avoid leaving dollars on the table.
- Rank and compare thousands of coverage combinations to find the best fit for your goals.
Your operation is unique—and your insurance should be, too.
A strategic shift
One potential strategy for 2026: Lower your individual base policy and increase area plan coverage. For example, a producer might reduce their base policy to 65% and layer on SCO and ECO to reach 90–95% total coverage. This approach can reduce premiums while maintaining strong protection, but that’s only if your operation aligns well with county performance.
Time to rebalance hail/wind coverage
Private hail and wind policies—which are not subsidized—are seeing rising premiums in some areas. If these are part of your current bundle, it might be time to shift more of your coverage to federally subsidized options like Revenue Protection, SCO, and ECO. You’ll still be protected and with a more efficient use of your insurance dollars.
Timing matters
Each type of coverage pays out on a different schedule:
- Hail/wind: Often pays shortly after a storm or harvest.
- MPCI/Revenue Protection: Pays shortly after harvest.
- Area plans: Payouts typically arrive the following summer, after county yields are finalized.
That’s why it’s critical to work with a lender who understands your full risk management timeline. When your insurance and lending teams are aligned, you gain confidence knowing your operation has the support it needs, when you need it.
Don’t miss the opportunity
In 2025, we saw a 244% increase in area plan premium volume in our footprint—driven largely by producers taking advantage of ECO. From 2022 to 2024, for every dollar our customers paid in area plan premiums, they received $1.54 in return on average. That’s the power of a well-structured plan with smart use of subsidies.
Let’s build your 2026 plan
Your crop insurance agent should be asking:
- What’s your cost of production?
- What’s your working capital per acre?
- What do you want your policy to do for you—provide peace of mind, protect your capital, or cover your costs?
We’re ready to help you build a plan that works for your operation.
