By Clint Schroeder, Program Manager for Ohio Farm Business Analysis Program and Eric Richer, Field Specialist, Farm Management
Note: this article was originally published on the Farm Office Blog on September 16, 2025
With the projected price discovery period now closed for winter wheat Ohio farmers have until September 30, 2025, to select the crop insurance coverage that best suits their operation. However, the decision on policy type and coverage levels for 2026 crops could be impacted by the passage of the One Big Beautiful Bill Act (OBBBA). Signed into law on July 4, 2025, OBBBA offers higher area-based policy coverage levels, increases premium support, and expands support for beginning farmers and ranchers. This article will highlight these key changes so that producers can make more informed decisions for 2026 production on their farm.
Previously, producers that wanted to purchase Supplemental Coverage Option (SCO) as part of their policy were required to enroll those base acres in the Price Loss Coverage (PLC) program. The OBBBA has decoupled SCO from the traditional Farm Bill decision allowing farmers to enroll in either the Agriculture Risk Coverage (ARC) or PLC program. Additionally, premium support, the subsidy for SCO has increased from 65% to 80%. In 2027 SCO coverage will also increase to 90%, up from the current 86% revenue benchmark. This band of coverage is currently available in the form of the Enhanced Coverage Option (ECO). ECO is currently available at two coverage levels, 86% to 90% and 90% to 95%. The premium support for these policies also increased to 80%. It is important to note that SCO and ECO provide coverage above the individuals’ underlying Multi-Peril Crop Insurance (MPCI) policy but are based off of the county’s production for that year. That is to say, SCO and ECO do not provide additional protection at the unit level for each farm, field and crop.
Premium support across all Basic and Optional Units was also increased by 3 to 5 percentage points. While OBBBA did not specifically raise the premium support for Enterprise Units, the increased subsidy for Basic and Optional Units affects the calculation the Risk Management Agency (RMA) uses to set premium support levels for Enterprise Units. Table 1 outlines the premium support for each coverage level under prior legislation compared to current support under the OBBBA.
| Table 1: Premium Subsidy Rates: Prior Legislation vs OBBBA | ||||
| Prior Legislation | OBBBA | |||
| Coverage Level | Basic and Optional Units | Enterprise Units | Basic and Optional Units | Enterprise Units |
| 50% | 67% | 80% | 67% | 80% |
| 55% | 64% | 80% | 69% | 80% |
| 60% | 64% | 80% | 69% | 80% |
| 65% | 59% | 80% | 64% | 80% |
| 70% | 59% | 80% | 64% | 80% |
| 75% | 55% | 77% | 60% | 80% |
| 80% | 48% | 68% | 51% | 71% |
| 85% | 38% | 53% | 41% | 56% |
Beginning farmers will also receive an increased subsidy that is tiered based on their years of farming. A Beginning Farmer or Rancher (BFR) is now defined as an individual who has not actively operated and managed a farm or ranch in any state, with an insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or sharecropper for more than 10 crop years. Under prior legislation BFRs received premium support of 10%. The OBBBA increases the subsidy amount to 15% for the first two years, 13% in year three, and 11% in year four. Years 5 through 10 will remain at the 10% additional premium support level.
Implications
The 2026 projected winter wheat price for Ohio is now set at $5.76 per bushel, down from $6.06 per bushel in 2025. The volatility factor for 2025 was .23 and decreased slightly to .20 in 2026. The 2026 MPCI wheat policies will use this price and volatility factor to determine producer premiums. SCO and/or ECO area-based policies can then be added as options, if desired. The corn and soybean projected prices will be determined from February 1-28, 2026 with an insurance signup deadline of March 15. Farmers should consult with their crop insurance agent to receive a quote tailored to their crop, county, unit structure, and approved yield. In some instances, reducing individual coverage and purchasing SCO or ECO may provide additional risk protection at a lower cost.
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