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Trends and Outlook for Supplemental Crop Insurance in the United States, 2025

Author

Listed:
  • Tsiboe, Francis
  • Monaco, Henrique
  • Zhao, Hongxi
  • Ifft, Jennifer
  • Chakravorty, Rwit
  • Turner, Dylan
  • Arita, Shawn

Abstract

This report examines supplemental crop insurance under the Federal Crop Insurance Program and how participation may change under the One Big Beautiful Bill Act (OBBBA). Using USDA Risk Management Agency data from 2015–2025 and early 2026 sales, the analysis shows that growth has been concentrated in the Enhanced Coverage Option (ECO). By 2025, supplemental coverage reached 86 million acres, 72 percent consisting of ECO, while Supplemental Coverage Option (SCO) adoption declined from its 2023 peak. ECO acreage increased roughly 4-fold after the 2025 subsidy increase, consistent with strong sensitivity to producer-paid premiums. Early 2026 sales project adoption of 61.8 percent of eligible acres for ECO and 26.5 percent for SCO, although observed ECO adoption remains about 10 percentage points lower than projected where reporting is complete. Because supplemental products cover narrow layers above the deductible, acreage growth does not translate proportionately into insured value. OBBBA’s recalibrated coverage bands take effect in 2027.

Suggested Citation

  • Tsiboe, Francis & Monaco, Henrique & Zhao, Hongxi & Ifft, Jennifer & Chakravorty, Rwit & Turner, Dylan & Arita, Shawn, 2026. "Trends and Outlook for Supplemental Crop Insurance in the United States, 2025," ARPC Report 412822, North Dakota State University.
    • Handle: RePEc:ags:arpcre:412822
    DOI: 10.22004/ag.econ.412822
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