Enhancements to Federal Crop Insurance: One Big Beautiful Bill Act

  • August 26, 2025

Learn more about recent RMA changes to federal crop insurance programs.

The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, made changes to the Federal Crop Insurance Act. Effective August 20, 2025, RMA has implemented the sections of this legislation detailed below. These changes are effective for all policies with a SCD on or after July 1, 2025.

Expanded Coverage Options

The following changes have been implemented to area-based crop insurance programs:

  • The premium subsidy rate for the Supplemental Coverage Option (SCO) has increased from 65 to 80 percent. This increase also applies to the Enhanced Coverage Option (ECO), the Margin Coverage Option (MCO), and the Hurricane Insurance Protection Wind Index (HIP-WI).
  • Insureds can now purchase SCO regardless of their Area Risk Coverage (ARC) elections with the FSA.
  • Producers will have access to 90 percent coverage by electing ECO in 2026. ECO and SCO have the same subsidy at 80 percent. In 2027, SCO coverage will expand to 90 percent.
  • The maximum insurable coverage level for the Whole-Farm Revenue Protection (WFRP) policy has increased from 85 to 90 percent.


Improved Premium Support

Premium subsidy rates have been improved across coverage levels and unit structures for policies that use the Common Crop Insurance Policy, Basic Provisions (CCIP). Refer to the chart below from RMA detailing the updated premium subsidy rates:

Beginning Farmer or Rancher (BFR) Benefit

Beginning farmers and ranchers will receive substantially increased premium support during their first decade of farming operations. The definition of a BFR has also changed, now defined as an individual who has not actively operated and managed a farm or ranch for more than ten crop years.

Learn More from RMA

RMA will incorporate policy revisions at the next applicable contract change date for all crops. For those crops where the contract change date has passed, and the SCD is on or after July 1, 2025, RMA has issued the One Big Beautiful Amendment.

FMH will provide further guidance on implementing these changes as we receive information from RMA. For additional details on these changes, please reference the RMA bulletin and the RMA news release.