How Is the Big Beautiful Bill Affecting Crop Insurance Decisions and Upcoming Government Payments?
May 04, 2026
Linda Kuhl
Grain Marketing & Origination Specialist
THE ONE BIG BEAUTIFUL ACT (OBBBA) was signed on July 4, 2025— and it came with several benefits for crop insurance!
For this year, the crop insurance decision deadline has passed (the deadline was March 16). Nevertheless, I’d like to provide an update on those changes, because producers are now reaping the advantages.
Before the 2026 crop year, Beginning Farmer and Rancher (BFR) benefits allowed new farmers to receive an additional 10 points of subsidy for their first 5 years. The OBBBA increased those benefits from 5 to 10 years. The rates are now:
For farmers, the changes to the Supplemental Coverage Option (SCO) and the Enhanced Coverage Option (ECO) are the most talked about story.
Both options offer producers a larger percentage of coverage, using an expected county yield. You continue to have your coverage at the farm level based on the percentage you chose. ECO is not a new option for producers; the change is that subsidy level. It was 44 percent in 2024 and prior years. In 2025, the subsidy was 65 percent. With the OBBBA, it has increased to 80 percent.
For example, ECO on corn would have cost almost $30 an acre in 2024. It now costs producers approximately $10 an acre—a very economical way to cover a higher percentage of price and a higher percentage of yields using the county level yields.
SCO has been around for some time. However, it has not received a lot of interest because producers who wanted SCO had to choose Price Loss Coverage (PLC) at the FSA level, and this program has been less advantageous than Agriculture Risk Coverage (ARC). The OBBBA now states that producers can choose ARC or PLC and still purchase SCO. Due to this change, the ARC or PLC decision at the FSA office has been delayed from March 15 to sometime this fall.
Finally, one impressive improvement to crop insurance from the OBBBA was the increased subsidies across all multi-peril crop insurance (MPCI) levels. Three to five points of increased subsidy levels were recognized across most MPCI levels, all equating to more coverage for less cost.
February 2026 – Bridge payments to be issued based on 2025 planted acres. Must apply at the FSA office.
Grain Marketing & Origination Specialist
THE ONE BIG BEAUTIFUL ACT (OBBBA) was signed on July 4, 2025— and it came with several benefits for crop insurance!
For this year, the crop insurance decision deadline has passed (the deadline was March 16). Nevertheless, I’d like to provide an update on those changes, because producers are now reaping the advantages.
Before the 2026 crop year, Beginning Farmer and Rancher (BFR) benefits allowed new farmers to receive an additional 10 points of subsidy for their first 5 years. The OBBBA increased those benefits from 5 to 10 years. The rates are now:
- 0–2 years, 15 extra subsidy points
- 3 years, 13 extra subsidy points
- 4 years, 11 extra subsidy points
- 5–10 years, 10 extra subsidy points
For farmers, the changes to the Supplemental Coverage Option (SCO) and the Enhanced Coverage Option (ECO) are the most talked about story.
- SCO – This level covers 86 percent down to the level of the MPCI you purchase.
- ECO – This level covers 95 percent to 86 percent.
Both options offer producers a larger percentage of coverage, using an expected county yield. You continue to have your coverage at the farm level based on the percentage you chose. ECO is not a new option for producers; the change is that subsidy level. It was 44 percent in 2024 and prior years. In 2025, the subsidy was 65 percent. With the OBBBA, it has increased to 80 percent.
For example, ECO on corn would have cost almost $30 an acre in 2024. It now costs producers approximately $10 an acre—a very economical way to cover a higher percentage of price and a higher percentage of yields using the county level yields.
SCO has been around for some time. However, it has not received a lot of interest because producers who wanted SCO had to choose Price Loss Coverage (PLC) at the FSA level, and this program has been less advantageous than Agriculture Risk Coverage (ARC). The OBBBA now states that producers can choose ARC or PLC and still purchase SCO. Due to this change, the ARC or PLC decision at the FSA office has been delayed from March 15 to sometime this fall.
Finally, one impressive improvement to crop insurance from the OBBBA was the increased subsidies across all multi-peril crop insurance (MPCI) levels. Three to five points of increased subsidy levels were recognized across most MPCI levels, all equating to more coverage for less cost.
GUIDE TO 2026 PAYMENTS
February 2026 – Bridge payments to be issued based on 2025 planted acres. Must apply at the FSA office.
- Corn: $44.36/acre
- Soybeans: $30.88/acre
- Oats: $81.75/acre
- If producers purchased ECO in 2025 through their crop insurance agent, this payment will automatically be issued for qualifying counties.
- No details are available yet.
- This payment will automatically be issued by FSA offices this fall.