Posted August 29, 2014
Kansas wheat growers are one step closer to accessing a new county-level crop insurance product designed to cover “shallow losses.” In late July, the Risk Management Agency released rules and coverage maps for the Supplemental Coverage Option contract (SCO) which drafted in the 2014 Farm Bill. SCO was created to cover so-called “shallow losses” - revenue losses that are deep enough to cause a loss, but to shallow to trigger an indemnity payment from a producer’s traditional crop insurance coverage.
Interested producers should talk with their crop insurance agents about coverage options before September 30.
SCO is available to producers who do not choose to enroll in the 2014 Farm Bill’s Agriculture Risk Coverage program (ARC) as they are designed to cover similar types of risk. In the event that a producer initially elects to take SCO coverage this fall, but then decides to enroll in the ARC program, (making them in-eligible for the SCO coverage), they can withdraw without penalty from SCO up to December 15th.