First Midwest BankFirst Midwest Bank logoArrow DownIcon of an arrow pointing downwardsArrow LeftIcon of an arrow pointing to the leftArrow RightIcon of an arrow pointing to the rightArrow UpIcon of an arrow pointing upwardsBank IconIcon of a bank buildingCheck IconIcon of a bank checkCheckmark IconIcon of a checkmarkCredit-Card IconIcon of a credit-cardFunds IconIcon of hands holding a bag of moneyAlert IconIcon of an exclaimation markIdea IconIcon of a bright light bulbKey IconIcon of a keyLock IconIcon of a padlockMail IconIcon of an envelopeMobile Banking IconIcon of a mobile phone with a dollar sign in a speech bubbleMoney in Home IconIcon of a dollar sign inside of a housePhone IconIcon of a phone handsetPlanning IconIcon of a compassReload IconIcon of two arrows pointing head to tail in a circleSearch IconIcon of a magnifying glassFacebook IconIcon of the Facebook logoLinkedIn IconIcon of the LinkedIn LogoXX Symbol, typically used to close a menu
FDIC-Insured - Backed by the full faith and credit of the U.S. Government

Suggested Search Terms

    Suggested Search Terms

      Worker of livestock farm
      Get Insights

      Get monthly ideas delivered right to your inbox.

      Subscribe for Insights

      For Your Small Business May 21, 2026

      2026 could be the right time to boost your crop, livestock insurance

      Crop insurance has evolved significantly over the last few decades, and one big development for farmers was the launch of the federal Enhanced Coverage Option (ECO) in 2021.1

      As the name suggests, ECO builds on top of existing multi-peril crop insurance (MPCI) to give farmers an added layer of protection. The coverage is based on county-level crop production, meaning that if yields are impacted by adverse growing conditions in your area, you can get a return on losses.

      Broad insurance protection

      By comparison, MPCI coverage is based on your own operation’s production, so adding ECO gives you broad protection against losses both on your own farm as well as across your county. ECO can also kick in when yields fall below 95% of the county average, while MPCI coverage only extends to 85%.

      Of course, as with any type of insurance, the cost of coverage can be a key factor in whether you decide to buy the product. Thankfully for ag operators, ECO recently became more affordable due to an increase in federal subsidies. Starting with the 2026 crop year, the government now pays 80% of the cost for ECO, up from the previous 65% subsidy.2

      This makes now a great time to explore policy options, and you can talk to an experienced ag insurance advisor for more details on what’s available in your area. Like with MPCI, there is a March 15 deadline to elect ECO coverage.

      Farmers can now purchase the Supplemental Coverage Option (SCO) regardless of their Agriculture Risk Coverage (ARC) elections, eliminating previous restrictions. The eligibility window for Beginning Farmer and Rancher (BFR) premium assistance has been extended from five to 10 years, offering sliding-scale increases to subsidies during the first few years.

      Other considerations for your ag insurance this year

      Depending on your operation, other types of insurance should be on your radar during the first few months of the year. This is prime crop insurance renewal season, and locking in the right coverage now is critical in setting you up for success in the busier months ahead.

      One policy that is garnering increased attention is Livestock Risk Protection (LRP). Another federal program offered through the U.S. Department of Agriculture, LRP is designed to protect against market volatility and allows producers to set a floor price for their livestock. A bullish cattle market is driving interest in the product, because producers can lock in their policies with elevated prices. If the market cools and prices drop, LRP offers indemnity payments based on the chosen coverage price. This makes it important for producers to take action while the market remains hot.

      According to the USDA Risk Management Agency, key changes to the LRP program effective for 2026 include:

      • Unborn Calves Coverage: LRP now covers unborn feeder calves (beef and beef/dairy crosses) sold within two weeks of birth. Unborn Bulls and Heifers, Unborn Brahman, and Unborn Dairy have also been added to the 6.0 to 9.0 hundredweight (cwt) categories.
      • Increased Weight Limits: The maximum coverage weight threshold for Feed Cattle has been increased, and unborn calf coverage weight has been boosted up to 900 pounds, allowing producers to protect calves from before birth through heavier market weights.
      • Cull Cow Expansion: Dairy cull cow coverage is now available for the beef system, with endorsement extensions up to a maximum of 52 weeks.
      • Drought & Disaster Exemptions: The forage disaster exemption has been expanded to address extended drought and other natural disasters, allowing producers to sell cattle early while still qualifying for indemnity payments.
      • Subsidy Capture Prohibition: Clear guidelines have been added to prevent program abuse.

      Navigating the insurance marketplace

      As always, working with an experienced ag insurance team is your best bet in navigating the insurance marketplace and choosing the right solutions for your operation. For momentum-building solutions for your agricultural business, visit Old National’s Agribusiness Lending page at oldnational.com/business/commercial-banking/specialized-industries/agribusiness-banking.

       

       

      1 https://farmdocdaily.illinois.edu/2020/11/the-new-enhanced-coverage-option-eco-crop-insurance-program.html
      2 https://www.rma.usda.gov/news-events/news/2024/washington-dc/usda-announces-changes-enhanced-coverage-option-insurance

      Subscribe for Insights

      Subscribe