USDA Announces Crop Insurance Changes
The U.S. Department of Agriculture (USDA) announced the implementation of changes to the federal crop insurance programs following the enactment of the One Big Beautiful Bill Act.
The changes include expanding benefits for beginning farmers and ranchers, increasing coverage options and making crop insurance more affordable and accessible across multiple insurance programs.
Support for beginning farmers and ranchers
Under the new legislation, beginning farmers and ranchers will receive substantially increased premium support during their first decade of farming operations, making crop insurance more affordable for the next generation of American agricultural producers.
The enhanced benefits mean beginning farmers and ranchers will now receive:
- 15 percentage points additional subsidy for the first two crop years
- 13 percentage points for the third crop year
- 11 percentage points for the fourth crop year
- 10 percentage points for years five through ten
These benefits build upon existing support that waives administrative fees and provides base premium subsidies. A beginning farmer or rancher is now defined as an individual who has not actively operated and managed a farm or ranch for more than 10 crop years.
“These enhanced benefits recognize the critical importance of supporting the next generation of American agricultural producers,” RMA Administrator Pat Swanson said. “By reducing financial barriers during the crucial early years of farming, we’re helping ensure the long-term sustainability of American agriculture.”
Expanding crop insurance coverage options
The legislation makes crop insurance more accessible and affordable through improvements to area-based crop insurance programs:
- Whole Farm Revenue Protection (WFRP) maximum coverage level increase from 85% to 90%, providing farmers with enhanced protection for diversified operations.
- Supplemental Coverage Option (SCO) premium support increase from 65% to 80%, making this gap coverage more affordable. Farmers also can now purchase SCO regardless of their Area Risk Coverage (ARC) elections with the Farm Service Agency, dramatically increasing accessibility.
- Enhanced Coverage Option (ECO) and similar programs—including Margin Coverage Option (MCO), Hurricane Insurance Protection Wind Index (HIP-WI) and Fire Insurance Protection Smoke Index (FIP-SI)—will also receive the increased 80% in premium support, making comprehensive coverage more affordable than ever.
- SCO coverage will also expand to a coverage level of 90% (from 86%). Farmers will have access to this option in 2026 via the ECO product, which has identical coverage at the same cost and premium support levels. USDA will then change the SCO policy for the 2027 crop year.
Improvements to premium affordability
The legislation delivers unprecedented improvements to premium support rates across coverage levels and unit structures, with particular emphasis on supporting enterprise and whole farm units.
The new subsidy structure maintains strong support for higher coverage levels while ensuring maximum affordability across the risk management spectrum, putting more money back in the pockets of American farmers, according to USDA.
Additional information
USDA’s Risk Management Agency will provide additional guidance on other provisions within the One Big Beautiful Bill Act as implementation details are finalized. Farmers should contact their local crop insurance agent or visit the RMA website for more information about how these changes may affect their coverage options.
