SCO is a crop insurance option that provides additional coverage for a portion of your underlying crop insurance policy deductible.
Yes, you must purchase SCO as an endorsement to a Yield Protection, Revenue Protection, or Revenue Protection with the Harvest Price Exclusion policy or to the Actual Production History policy for crops that don’t have revenue protection available. The Federal Government pays 65 percent of the premium cost for SCO.
Yes, SCO eligibility is linked to whether you have elected ARC for the farm and commodity. You may not participate in SCO on a farm if base acres for the crop have elected ARC. Electing PLC will not make a commodity ineligible for SCO.
- Example 1: If you have a farm with corn base acres and elect ARC and plant corn then you may not participate in SCO
- Example 2: If you have a farm with corn base acres and elect ARC but plant soybeans, you may purchase SCO on the soybeans
- Example 3: If you have a farm with corn base acres and elect PLC and plant corn then you may participate in SCO
Yes, you can still get SCO coverage for the acreage for which you elect PLC. ARC/PLC elections and SCO coverage are all done on a crop-by-crop basis. Each crop will have its own policy and own ARC/PLC acreage report on which ARC/PLC elections will be reported.
No, the election of ARC for crop on the farm makes all acres of the crop on that farm ineligible for SCO for all producers, even if those acres are not enrolled on a producer’s share of the crop.
Farms that you have a share in that elected ARC must be reported on your acreage report. If it is discovered you have incorrectly reported and the information determined to be correct results in acreage that is ineligible for SCO the acreage will be ineligible for any SCO indemnity and you will still be required to pay 60 percent of the premium due.
STAX is a crop insurance product for upland cotton and cottonseed that provides coverage for a portion of the expected revenue for your area. Most often your area will be your county, but may include other counties or practices if data is limited.
STAX may be purchased on its own, or in conjunction with another cotton policy, including Yield Protection, Revenue Protection, Revenue Protection with the Harvest Price Exclusion, and any of the Area Risk Protection Policies. The Federal Government will pay for 80 percent of the premium cost for STAX.
Electing ARC or PLC does not cause a farm to be ineligible for STAX coverage. However, STAX coverage is affected by ARC/PLC enrollment decisions. Enrolling seed cotton base on a farm in ARC/PLC makes that farm ineligible for STAX.
No. Enrolling a farm in seed cotton ARC/PLC makes the farm’s seed cotton or upland cotton ineligible for STAX coverage.
- Example 1: If you have a farm with seed cotton base acres and elect and enroll in ARC or PLC and plant upland cotton you may not participate in STAX
- Example 2: If you have a farm with wheat base acres and elect and enroll in ARC or PLC and plant upland cotton you may participate in STAX
- Example 3: If you have a farm with seed cotton base acres and elect but do not enroll in ARC or PLC but plant upland cotton you may participate in STAX
For election, all producers with interest in a farm must make a unanimous choice of either ARC or PLC for the crop, which will apply to all acres on the farm. Once ARC or PLC has been elected for the farm, each producer must annually enroll their respective share to be eligible for payment.
Yes. A farm’s upland cotton is eligible for STAX if seed cotton base acres are not enrolled in ARC/PLC for that year. STAX eligibility is not affected by ARC/PLC enrollment on a farm that has no seed cotton base acres or no seed cotton base acres enrolled.
Yes. Enrolling commodities other than seed cotton in ARC/PLC will not make the farm’s upland cotton ineligible for STAX coverage.
Yes, if the producer has purchased STAX, STAX coverage will apply to all acreage on farms in the county that do not have base acres enrolled in seed cotton ARC/PLC (unless those acres are uninsurable for a different reason).
No. Enrolling a farm’s seed cotton base acres in ARC/PLC makes the farm’s upland cotton ineligible for STAX even if the producer is later found to be ineligible for ARC/PLC payments.
Yes. Your eligibility for STAX on a farm is NOT impacted by ARC/PLC enrollment for any covered commodity other than seed cotton. As long as the farm does not have seed cotton base acres enrolled in an annual ARC/PLC contract, the farm’s upland cotton remains eligible for STAX.
No. Enrolling a farm in seed cotton ARC/PLC makes all upland cotton acreage on that farm ineligible for STAX coverage.
Yes. As long as the farm does not have seed cotton base acres enrolled in an annual ARC/PLC contract, the farm remains eligible for STAX.
Yes. As long as the farm does not have seed cotton base acres enrolled in an annual ARC/PLC contract, the farm’s upland cotton remains eligible for STAX.
No. All producers with a share in a covered commodity must jointly enroll or not enroll in ARC/PLC for each covered commodity. Only enrolled covered commodities on the farm may qualify for ARC/PLC payments.
Farms that you have a share in that enrolled in ARC/PLC must be reported on your acreage report. If it is discovered you have incorrectly reported acreage as insurable under STAX and the information determined to be correct results in acreage that is ineligible for STAX, that acreage will be ineligible for any STAX indemnity and you will still be required to pay 60 percent of the premium due.