By Scout Nelson
Senator John Hoeven, chairman of the Senate Agriculture Appropriations Committee and senior member of the Senate Agriculture Committee, has announced that the U.S. Department of Agriculture (USDA) Risk Management Agency is implementing new crop insurance enhancements included in the One Big Beautiful Bill (OB3). These changes apply to all crops with sales closing dates on or after July 1, 2025.
A key part of the package is Hoeven’s FARMER Act, designed to make higher levels of crop insurance coverage more affordable. The legislation raises premium support for individual-based coverage by an additional 3% to 5% across nearly all levels, beginning at 55%.
The bill also improves the Supplemental Coverage Option (SCO), raising the coverage level from 86% to 90% and increasing premium support from 65% to 80%. In 2026, producers will be able to access this through the Enhanced Coverage Option (ECO), which provides identical protection at the same cost. The SCO policy itself will change in 2027. Importantly, farmers can now purchase SCO regardless of their Area Risk Coverage (ARC) elections through the Farm Service Agency.
These enhancements are expected to provide significant benefits, including $44 million in additional premium support for North Dakota producers in 2026.
The bill also includes expanded support for beginning farmers, defined as those with fewer than 10 years of active management experience. They will receive crop insurance premium subsidies above the base rate, including 15 percentage points for the first two crop years, gradually decreasing to 10 percentage points by years five through ten.
Senator Hoeven emphasized that these changes aim to reduce risk and provide stability for both experienced and beginning producers. Farmers are encouraged to contact their crop insurance agents or visit the USDA RMA website for more information about these enhanced coverage options.
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Categories: North Dakota, Crops, Government & Policy