Margin Coverage Option (MCO)
Provides coverage against a decrease in your operating margin that’s caused by reduced county yields, reduced commodity prices, increased prices of certain inputs or any combination of these things. It covers a portion of your underlying MPCI policy’s deductible. The operating margin is calculated by subtracting revenue from input costs. It works in conjunction with your underlying multi-peril policy so it must be purchased as an endorsement to the Yield Protection (YP), Revenue Protection (RP), Revenue Protection with the Harvest Price Exclusion (RP-HPE) or Actual Production History (APH) policy.
Coverage Level: An additional band of coverage from 86% to 95% of expected crop value
Availability:
- Corn and Soybeans: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin
- Cotton: Kansas, Oklahoma and Texas
- Grain Sorghum: Kansas, Oklahoma and Texas
- Rice: Arkansas, California, Louisiana, Mississippi, Missouri and Texas
- Spring Wheat: Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota and Washington
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