By Andi Anderson
The Risk Management Agency (RMA) of the USDA has released county-level yields for 2024 corn and soybeans, which play a crucial role in determining payments for area-based insurance programs like ECO (Enhanced Coverage Option) and SCO (Supplemental Coverage Option).
These payments will be activated across many counties in Illinois and other regions due to insurance price declines for both crops.
In Illinois, 2024 corn yields were generally at or above trend levels, except for some counties in the southern and northern parts of the state. Likewise, soybean yields followed a similar pattern, with higher yields in the northern half of Illinois and lower ones in the southern counties.
Despite relatively good yields, both crops experienced significant declines in insurance prices—corn's harvest price dropped to $4.16, below the projected $4.66, and soybeans fell from $11.55 to $10.03. As a result, ECO and SCO payments will be triggered in multiple counties for both crops.
For corn, ECO payments at the 95% coverage level will be triggered in 43 Illinois counties, with additional payments from SCO in southern Illinois counties. Similarly, soybean payments will be triggered in 91 counties for 95% ECO coverage, with 31 counties eligible for SCO payments.
Nationwide, over 70% of U.S. counties are expected to see payments from the 95% ECO coverage for corn, and the percentage is even higher for soybeans, reflecting their larger yield decline and price reduction.
These payments are significant in helping farmers offset the financial challenges caused by lower-than-expected crop revenues. The increase in ECO and SCO utilization continues to grow, providing a safety net for producers as they face unpredictable conditions.
Photo Credit: soybeans-for-forage
Categories: Illinois, Crops, Soybeans