Less Than Two Weeks to Withdraw from SCO programTue, 02 Dec 2014 15:56:45 CST
Farmers have until December 15th to withdraw from the Farm Service Agency's Supplemental Coverage Option (SCO), if farmers select the Agricultural Risk Coverage (ARC) program for base wheat acres on a farm. Farmers cannot purchase SCO insurance on acreage enrolled in ARC and producers that purchase SCO on acreage enrolled in ARC will be subject to a penalty.
SCO can only supplement acreage enrolled in the Price Loss Coverage (PLC) program. SCO must be purchased in addition to a normal crop insurance policy, often referred to as a "companion policy". SCO allows producers enrolled in PLC to purchase a narrow band of coverage that includes yield protection. PLC alone only protects against price declines. SCO is similar to the previous ARC program, except producers have to pay for it.
Oklahoma State University Extension specialists said it may not be cheaper for a producer wanting revenue protection to increase their companion policy level. The cost depends on the farm and the county where farm is based on annual production history yield, farm yield volatility, county average yield, etc. OSU Extension recommend producers get a quote from an crop insurance agency to determine the best option.
Farmers will need to work with their crop insurance agency for SCO coverage.
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