SCO, a farm bill creation, available for eight major crops | Food and Environment Reporting Network

The Supplemental Coverage Option, created by the 2014 farm law as a cushion against low prices and poor yields, will be offered on eight widely planted crops for harvest next year, said the Agriculture Department. SCO will be available for corn, cotton, grain sorghum, rice, soybeans, spring barley, spring wheat, and winter wheat in many areas. For example, USDA estimates it will be offered in 80 percent of wheat-growing counties. More details and a list of eligible counties for spring-planted crops will be available later this year, said the Risk Management Agency.

Growers cannot enroll in SCO if they choose Agricultural Risk Coverage as their primary crop subsidy program. Winter wheat growers will have the option of revoking SCO entry if they decide later this year to enroll in ARC. The other option for crop subsidies is Price Loss Coverage.

SCO will cover a portion of crop losses that are not covered by crop insurance. It comes into play when losses exceed 14 percent of yield or revenue, depending on a grower’s underlying insurance coverage. USDA will play 65 percent of the premium. SCO may be expanded to additional areas and additional crops in 2016.

For a map of SCO-eligible counties for winter and spring-planted wheat, click here. For a USDA fact sheet on SCO, click here. To read a farmdoc daily explanation of SCO and how it relates to other farm supports, click here.