2025 ECO Payments Vary In The Upper Midwest

The USDA Risk Management Agency (RMA) recently announced the final RMA county average yields for corn and soybeans. The RMA yields are used to determine payment eligibility for producers that carried either 95 percent or 90 percent Enhanced Coverage Option (ECO), or Supplemental Crop Option (SCO) area-based crop insurance coverage for the 2025 crop year. ECO and SCO insurance coverage utilize the same Spring projected price and the same harvest price as the typical individual crop insurance policies; however, ECO and SCO insurance indemnity payments are based on county average expected yields and final harvest yields, rather than individual farm yields. Final county RMA yields corn and soybeans are usually not released until June in the year following harvest, which is why any potential ECO and SCO payments are not finalized until that time, as compared to indemnity payments for individual insurance policies, which are usually paid shortly after harvest.
ECO and SCO insurance can be purchased as an additional endorsement with underlying Yield Protection (YP) and Revenue Protection (RP) individual crop insurance coverage. Calculations for ECO and SCO with YP policies are based on how the final county yield for a crop compares to the 2025 average county yield for that crop. In order to trigger an insurance indemnity payment with YP policies, yield reductions must be 5 percent below the county average yield with 95% ECO coverage, 10 percent below the average yield with 90% ECO coverage, and 14 percent below the average yield with SCO coverage.
Calculations for ECO and SCO coverage with RP policies compares the final county revenue for a crop to the expected county revenue for that crop. The expected revenue is the 2025 average county yield times the projected crop insurance price, while the final revenue is the final county yield for 2025 times the harvest price for that crop. In years when the harvest price is lower than the projected price for a crop, such as occurred with corn and soybeans in 2025, ECO and SCO payments would likely be triggered at higher final county average yields than with YP policies, due the revenue calculation. For RPE coverage (RP policies with harvest price exclusion), the 2025 trigger percentages should be similar to RP policies.
Following is a Summary of 2025 ECO and SCO payments for corn and soybeans:
CORN - The Spring projected price for corn in 2025 was $4.70 per bushel, while the harvest price was $4.22 per bushel, or 10.2 percent below the projected price. As a result of the significantly lower harvest for corn, insurance indemnity payments for producers that had 95% ECO coverage in 2025, with a RP insurance policy, were triggered at a final 2025 county yield that was 5.8 percent above the county average yield. The indemnity payments with a 90% ECO policy were triggered at a final 2025 corn yield very near the county average yield. The maximum indemnity payment for RP policies with either 95% ECO coverage or 90% ECO coverage were achieved with a final 2025 county corn yield that is about 4.3 percent below the county average yield. SCO payments would be initiated with a yield reduction of 4.3 percent or more. For example, if the 2025 county average yield was 210 bushels per acre with an RP policy, 95% ECO payments would be initiated at a final 2025 yield below 222 bushels per acre, and at a final yield very near 210 bushels per acre with 90% ECO coverage. The maximum ECO payments would occur at a 2025 county yield below 200 bushels per acre.
Insurance indemnity payments on RP policies with 95% ECO coverage were triggered on non-irrigated corn acres in about 29 percent of eligible counties in the U.S. in 2025. Several counties in West Central and Southeast Minnesota qualified for at least partial indemnity payment with 95% ECO coverage, with some counties in West Central Minnesota qualifying for the maximum ECO payment. About two-thirds of the Counties in Iowa qualified for a partial insurance payment with 95% ECO coverage, with some counties in the North Central and Southwest portions of Iowa qualifying for a maximum payment. A few counties in southern South Dakota, as well as some counties northwest and southeast Nebraska, qualified for the maximum indemnity payment at the 95% ECO coverage level. Only a few counties in North Dakota and Wisconsin qualified for ECO payments for corn in 2025.
 
SOYBEANS - The projected price for soybeans in 2025 was $10.54 per bushel, while the harvest price was $10.35 per bushel. Insurance indemnity payments were triggered in counties that had a final county yield that was 3.3 percent below the county average yield with 95% ECO insurance coverage in 2025, and 8.4 percent yield reduction with 90% ECO coverage. Maximum ECO indemnity payments occurred with a 2025 yield reduction about 12.5 percent below the county average yield. Fewer counties in the Upper Midwest qualified for soybean 2025 ECO payments, as compared to corn. The only significant soybean 2025 ECO payments in the Upper Midwest were in eastern North Dakota and a few counties in West Central Minnesota. There were very few counties that qualified 2025 ECO payments in Iowa, Nebraska, South Dakota, Wisconsin, or southern Minnesota.
 
Updated Summary of Potential 2025 PLC and ARC-CO payments:
For the 2025 crop year only, producers will get the higher of potential PLC or ARC-CO payments for corn, soybeans, wheat, and other program crops, with payments to be paid in October, 2026. The final 2025 county RMA yields that were released in June are important to determine potential 2025 ARC-CO payments. The final market year average (MYA) prices for corn, soybeans, and wheat are used to determine any potential Price Loss Coverage (PLC) and Ag Risk Coverage (ARC-CO) payments for the 2025 crop year. The 2025 MYA price is the U.S farm-level average price from September 1, 2025 through August 31, 2026. If the MYA price for a crop is lower than the 2025 reference price, there will be a PLC payment. The potential ARC-CO payments are based on the MYA price and the final 2025 county average yield, compared to the benchmark (BM) price and county benchmark yield for 2025. For information on benchmark yields, prices and revenues, and other farm program information, producers should access the USDA ARC-PLC web site at: www.fsa.usda.gov/arc-plc.
 
CORN - The 2025 PLC reference price is $4.42 per bushel, and the 2025 benchmark price for ARC-CO payments is $5.03 per bushel. Based on the June WASDE report, the estimated 2025 MYA corn price is $4.15 per bushel. This is $.27 per bushel below the threshold for 2025 corn PLC payments and is $.88 below the 2025 benchmark price. At a final MYA price of $4.15 per bushel, the estimated 2025 PLC payment would be about $30 to $40 per corn base acre in many counties, depending on the farm program yield. If the MYA price increases to $4.25 per bushel, the PLC payment estimate would drop to about $20 to $30 per base acre; however, if the MYA price declines to $4.05 per bushel, the PLC estimate would increase to about $40 to $50 per base acre. At the current 2025 MYA price, potential 2025 ARC-CO payments would be initiated with a final county average corn yield that is about 8-10 percent above the 2025 benchmark yield, and ARC-CO payments will likely exceed PLC payments at about 104 percent or less of the county benchmark yield.
 
SOYBEANS - The 2025 PLC soybean reference price is $10.71 per bushel, and the 2025 soybean benchmark price for ARC-CO payments is $12.17 per bushel. Based on the June WASDE report, the estimated 2025 MYA soybean price is $10.40 per bushel. This is $.31 per bushel below the threshold for 2025 PLC payments and is $1.77 below the 2025 benchmark price. At a final MYA price of $10.40 per bushel, the estimated 2025 PLC payment would be $10 to $15 per soybean base acre, which would drop to about $6 to $10 per base acre if the MYA price increases to $10.50 per bushel. At the current MYA price estimate, 2025 ARC-CO payments would be initiated with a final 2025 county average soybean yield that is about 5 percent above the 2025 county benchmark yield, and ARC-CO payments will likely exceed PLC payments at about 102 percent or less of the county benchmark yield.
 
WHEAT - The 2025 PLC wheat reference price is $6.35 per bushel, and the 2025 wheat benchmark price for ARC-CO payments is $6.98 per bushel. Based on the June WASDE report, the estimated 2025 MYA wheat price is $5.05 per bushel. This is $1.30 per bushel under the threshold for 2025 wheat PLC payments and is $1.93 below the 2025 benchmark price. At a final MYA price of $5.05 per bushel, the estimated PLC payment would be about $40 to $50 per base ace. At the current MYA price estimate, the 2025 ARC-CO payments would be initiated with a 2025 county wheat yield that is about 20-25 percent above the 2025 county benchmark yield. It appears highly likely that there will be both a significant PLC and ARC-CO payment on wheat base acres for the 2025 crop year.
For additional information contact Kent Thiesse, Farm Management
Phone - (507) 381-7960; E-mail - [email protected]