Date
To
All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties
All Risk Management Agency Field Offices
All Other Interested Parties
From
Richard H. Flournoy, Deputy Administrator /s/ Richard H. Flournoy
Subject
Margin Coverage Option - Effective for the 2026 and Succeeding Crop Years
BACKGROUND:
The Federal Crop Insurance Corporation Board of Directors approved implementation of the Margin Coverage Option (MCO) program, under section 508(h) of the Federal Crop Insurance Act, on May 23, 2024.
MCO provides a band of insurance from 86 percent up to 95 percent of expected crop value to cover producers’ operating margins. MCO will be available as an endorsement for corn, cotton, grain sorghum, soybeans, rice, and spring wheat for the 2026 and succeeding crop years.
ACTION:
The following documents will be available by close of business today on the RMA website:
- MCO Endorsement (26-MCO)
- MCO Insurance Standards Handbook (FCIC-20700U)
- MCO Price Provisions – General (26-MCO PP)
- MCO Price Provisions – Corn (26-MCO PP-0041)
- MCO Price Provisions – Cotton (26-MCO PP-0021)
- MCO Price Provisions – Grain Sorghum (26-MCO PP-0051)
- MCO Price Provisions – Rice (26-MCO PP-0018)
- MCO Price Provisions – Soybeans (26-MCO PP-0081)
- MCO Price Provisions – Wheat (26-MCO PP-0011)
Interested producers should contact a crop insurance agent for further information. A list of agents can be found on the Agent Locator.
DISPOSAL DATE:
December 31, 2025