MULTI-PERIL

Margin Coverage Option

Margin Protection Option (MCO) is an endorsement available on federal crop insurance policies that offers area-based protection against unexpected drops in operating margin (revenue minus input costs) due to reduced area yields, lower commodity prices, higher input costs or a combination of these factors. Because it’s based on area averages, MCO may not reflect individual farm performance.

MyMCO

Take your coverage a step further by adding protection where it’s often needed most — operating margin.

MyMCO, a Hudson-exclusive program, complements the MCO endorsement by providing grower- level protection against unexpected drops in operating margin (revenue minus input costs).

It helps shield producers from risks such as lower production, lower commodity prices, rising input costs or any combination of these challenges. Indemnities are determined using the grower’s individual APH and production in relation to yields, with MyMCO indemnities offset by the federal MCO indemnity.

Add MyMCO to your coverage strategy to build protection that truly reflects both your production risks and your bottom line.

What is Margin Coverage Option (MCO)?

MCO uses the same expected and final area yields and harvest prices as Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO). It covers losses from 86% (where SCO ends) up to 90% or 95% of expected crop value. When paired with the Stacked Income Protection Plan (STAX) at the 90% trigger, MCO covers the 90–95% band.

Like SCO and ECO, MCO is tied to your underlying insurance policy. Payments are triggered when the county’s harvest margin falls below the trigger margin due to decreased revenue and/or increased input costs.

Eligibility

MCO must be purchased as an endorsement to a Yield Protection (YP), Revenue Protection (RP), Revenue Protection with the Harvest Price Exclusion (RP-HPE) or Actual Production History (APH).

The information contained in this publication is for general purposes only and shall not modify the terms of any insurance policy.

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