Farmers in Ohio face a key deadline of September 30, 2025, to select crop insurance coverage for winter wheat, with upcoming changes under the One Big Beautiful Bill Act (OBBBA) potentially influencing decisions for the 2026 crop year. Signed into law on July 4, 2025, the OBBBA introduces several updates to crop insurance programs, including higher area-based coverage levels, expanded premium support, and increased assistance for beginning farmers and ranchers.
New Options for Supplemental and Enhanced Coverage
Under prior rules, farmers who chose the Supplemental Coverage Option (SCO) were required to enroll base acres in the Price Loss Coverage (PLC) program. The OBBBA has decoupled SCO from the Farm Bill decision, allowing farmers to participate in either Agriculture Risk Coverage (ARC) or PLC. The subsidy for SCO premiums has also increased from 65% to 80%, and in 2027, SCO coverage will rise to 90%, up from the current 86% revenue benchmark.
The Enhanced Coverage Option (ECO) — which provides 86% to 90% or 90% to 95% coverage — also benefits from an 80% premium support rate. Both SCO and ECO supplement a farmer’s Multi-Peril Crop Insurance (MPCI) policy but are based on countywide production rather than individual farms, meaning they do not add unit-level protection.
Adjustments to Premium Support
Premium support for Basic and Optional Units has increased by 3 to 5 percentage points. While the OBBBA did not directly increase subsidies for Enterprise Units, the higher support for Basic and Optional Units indirectly influences how the Risk Management Agency (RMA) calculates subsidies for Enterprise Units.
Expanded Assistance for Beginning Farmers and Ranchers
The OBBBA modifies how Beginning Farmers and Ranchers (BFRs) qualify and benefit. A BFR is defined as someone who has not actively operated and managed a farm or ranch with an insurable interest for more than 10 crop years. Previously, BFRs received a 10% premium support increase. Now, the OBBBA provides 15% support for the first two years, 13% in year three, and 11% in year four, with years five through ten remaining at the 10% level.
Pricing and Sign-up Timelines
For the 2026 crop year, Ohio’s projected winter wheat price is $5.76 per bushel, compared to $6.06 for 2025. The volatility factor has declined slightly, from 0.23 to 0.20, and will be used in calculating premiums for MPCI wheat policies. Farmers can add SCO and/or ECO policies if desired.
Price discovery for corn and soybeans will occur February 1–28, 2026, with a March 15, 2026, insurance signup deadline. Farmers are encouraged to review quotes based on their county, crop, and unit structure to determine cost-effective combinations of coverage.
The One Big Beautiful Bill Act’s changes — ranging from higher premium support to broader eligibility for beginning farmers — mark a significant shift for crop insurance in the coming year. Farmers evaluating their 2026 coverage will need to consider these updates as they plan for the next growing season.
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