The USDA Risk Management Agency has introduced Margin Coverage Option (MCO) as a new crop insurance option for producers. It is available to Wisconsin farmers for the 2026 crop, but it must be purchased by Sept. 30, 2025. MCO offers protection against unexpected drops in operating margins — the difference between revenue and input cost. MCO uses county yields, Chicago Mercantile Exchange (CME) futures prices, and major input prices on the CME or New York Mercantile Exchange (NYMEX) to calculate margins on an area-wide basis as the difference between expected area revenue and expected area operating costs.
MCO is an option that is added onto a producer’s Revenue Protection (RP) or Yield Protection (YP) policy and can be combined with the Supplemental Coverage Option (SCO). Producers can choose any standard coverage level for their RP or YP policy, whether irrigated or non-irrigated, but organic practices are not insurable under this policy. MCO cannot be combined with the Enhanced Coverage Option (ECO), nor can it be added to an Area Revenue Protection, Area Yield Protection, or Margin Protection crop insurance policy. Like ECO and SCO, the MCO premium is subsidized up to 80%. Lastly, MCO has no restrictions on participation in Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC).
More information on MCO is available here: Margin Coverage Option (MCO) for Wisconsin Ag Producers