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Rockford, IL | It provides additional coverage for a portion of your underlying crop insurance policy deductible. It is not a stand alone product. You must buy it as an endorsement to your MPCI policy and it comes with a 65% subsidy. It will match your MPCI policy elections (Yield, Revenue Protection). It protects you from 86% down to your MPCI level. Most people utilize it with their 80% MPCI policy giving them a band of area coverage from 86% down to 80% but I have used it for guys in the fringe states like ND with a 75% MPCI policy and an 86%-75% SCO band. The biggest thing to remember is that the SCO is area coverage and not individual coverage. Historically this is good for states that have very high MPCI premiums, producers with consistently yield compared to the county or counties with variability.
If you are a producer that has very good yields vs their APH unfortunately you are really not buying much overall revenue protection unfortunately. We may have to get a little creative.
Rule of thumb is that the MPCI premium doubles from 80% to 85%. Maybe you stick with 80% (or 75% depending on risk tolerance), buy SCO from 86% - 80%. After that I would at least LOOK at a 5% upper band of coverage and see what the cost is.
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Got my postcard.
