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Farm Bill Proposals to Enhance Supplemental Coverage Option (SCO)

Author

Listed:
  • Schnitkey, Gary
  • Sherrick, Bruce
  • Zulauf, Carl
  • Paulson, Nick
  • Coppess, Jonathan
  • Baltz, Jim

Abstract

Both the House and Senate versions of the farm bill include proposals to modify Supplemental Coverage Option (SCO) insurance. SCO crop insurance provides county-level coverage from the selected coverage level on a farm-level crop insurance product up to a fixed maximum coverage level based on county-level results. This article examines the impacts of the SCO version proposed by the House for corn in McLean County, Illinois. Overall, increasing SCO subsidy levels seems questionable as a policy objective. At best, farmers risk management is improved marginally at high costs to the Federal government. A better focus would be on enhancing the protection of the underlying farm-level product.

Suggested Citation

  • Schnitkey, Gary & Sherrick, Bruce & Zulauf, Carl & Paulson, Nick & Coppess, Jonathan & Baltz, Jim, 2025. "Farm Bill Proposals to Enhance Supplemental Coverage Option (SCO)," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 14(104).
  • Handle: RePEc:ags:illufd:358502
    DOI: 10.22004/ag.econ.358502
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