The new ECO+ policy add-on from Farmers Mutual Hail offers farm-level protection, even with an area loss. Combine it with your underlying RP, RP-HPE, YP, YDO, or APH policy and Enhanced Coverage Option (ECO) endorsement for more complete coverage with higher commodity prices.
How Does It Work?
- Select the ECO+ endorsement with your ECO plan
- Your ECO+ doesn’t have to follow ECO selection, option to choose Revenue or Yield protection
- Available in two bands of coverage: 86%-90% or 86%-95%
- Coverage must be elected by the sales closing date for your underlying policy
What Are the Benefits?
Coverage up to 95%
of expected crop value
Offers individual loss coverage on top of underlying plan
ARC or PLC participation
has no impact on eligibility
Sample Calculation
ECO+ Revenue Calculation Sample Calculations
| MPCI Coverage: 75% Revenue Protection | Production to Count: 15,000 bushels |
| Coverage Band: 90% - 86% | Approved Yield Revenue: $64,000 |
| Upper % of Coverage Band: 90% | MPCI Projected Price: $4.00 |
| Coverage Spread: 4% | MPCI Harvest Price: $3.50 |
| Acres: 80 | Share: 100% |
| Approved Yield: 200 bu./acre | ECO Indemnity: $500 |
Determine the Total Limit of Insurance | |
| 75% x $4.00 Projected Price x 4% Coverage Spread x 200 APH x 80 acres x 100% Share = $1,920 Total Limit of Insurance | |
Determine the Harvest Revenue | |
| 15,000 Production to Count x $3.50 Harvest Price = $52,500 Harvest Revenue | |
Determine the Loss Percentage | |
| 90% – [52,500 Harvest Revenue/$64,000 Approved Yield Revenue] =
7.97% Loss Percentage
(Cannot be greater than the coverage band spread so 4% is used instead) | |
Determine Payment Factor | |
| 4%/4% = 1.0000 Payment Factor | |
Calculate the ECO+ Indemnity | |
| $1,920/acre - $500 ECO Indemnity = $1,420 ECO+ Payment | |
* This sample is for example purposes only. Contact an FMH agent for full details.