WASHINGTON, DC – The USDA has introduced a new Margin Coverage Option, or MCO, for select crops beginning with the 2026 crop year.
MCO provides area-based protection for corn, soybeans, cotton, grain sorghum, rice, and spring wheat against revenue shortfalls caused by yield drops, falling prices, or rising input costs. Coverage bands range from 86–95 percent of expected crop value. MCO can be purchased alongside SCO or STAX, but not with ECO, MP, or HIP-WI.
Eligible states vary by crop, with availability across major producing regions in the Midwest, South, and Pacific Northwest. MCO is offered as an endorsement to existing insurance plans.
USDA’s Risk Management Agency says the program addresses producer concerns over input cost volatility and will help farmers better manage risk.