9/30 Deadline is Near: It’s Time to Talk to Your Crop Insurance Agent About MCO

September 30 is the sales closing for the Margin Coverage Option (MCO) for crop year 2027 and with diesel, fertilizer and other input costs still moving unpredictably, protecting against margin shortfalls is more important than ever. These factors underscore that farmers cannot rely on last year’s coverage decision. The reality is that MCO is a fall decision, and the window to secure coverage for 2027 is closing quickly. It’s important to talk with your ProAg agent to see if MCO fits into your operation’s 2027 risk management plan.

A new analysis from the experts at farmdoc daily does a great job of outlining why more farmers are considering MCO this year. Changes tied to the One Big Beautiful Bill Act shifted the MCO coverage band to a 95% to 90% range, and the analysis walks through how 2027 projected prices for corn, soybeans, and key inputs like diesel and DAP compare to recent years.

MCO key details:

• Area-based coverage
• Protects against margin shortfalls, driven by revenue decreases, cost increases, or both
• Based on futures prices, county yields, and expected input needs based on expected county yields
• 80% government subsidy
• Coverage levels from 95% down to 90%
• Is an endorsement that supplements your underlying MPCI policy

Projected prices can be found at margincoverageoption.com and a historical map from farmdoc daily can be found below.

Comparing MCO vs. ECO

One of the biggest questions the farmdoc daily experts analyze is how MCO competes with the Enhanced Coverage Option (ECO), since farmers can only choose one. Both coverages offer an 80% subsidy, similar premiums and have similar average payments across U.S. counties for corn and soybeans. Results, however, can shift from year to year. Historical data show trends for more payouts would have been triggered for MCO in situations when costs rise between fall and spring, as they did in 2021 and 2022, or in years where crop price declines and previous fall projected prices were higher than spring prices, like in 2024 (farmdoc daily, September 23, 2025).

And while premiums are similar, the farmdoc daily experts note that differences in base rates, projected prices and implied volatilities (for ECO) can fluctuate premiums.

The farmdoc daily experts break down some final considerations for why MCO deserves serious consideration before the 9/30 sales closing date.

• MCO may be a more attractive option to farmers who are concerned about corn or soybean prices falling from fall into spring, overall fall-to-spring implied volatility and input prices.
• Some producers may have an option to mix and match, using ECO on one crop or county and MCO on another, but we recommend that be a conversation with your crop insurance agent.

At the end of the day, between the choice of MCO or ECO, having one of them in place can offer real peace of mind heading into next season. Talking to your local ProAg agent before the 9/30 sales closing date is the next step to securing peace of mind now for 2027.

Read the full analysis from the farmdoc daily experts.

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Citations:
Monaco, H., N. Paulson, J. Ifft, C. Zulauf and G. Schnitkey. “The 2027 Margin Coverage Option (MCO) Decision.” farmdoc daily (16):166, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, September 16, 2026.

Monaco, H., G. Schnitkey, N. Paulson and C. Zulauf. “Margin Coverage Option (MCO) Historical Analysis.” farmdoc daily (15):174, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, September 23, 2025.