Crop Insurance Minnesota

Minnesota’s agriculture is exposed to various risks: hail, drought, flooding, early/late frost, excess moisture, and pests. In 2024, crop insurance covered 18.1 million acres in Minnesota and paid over $1 billion in indemnity. Crop insurance is offered via private agents but subsidized and regulated by the USDA’s Risk Management Agency (RMA). Because Minnesota has diverse geography (north/south, wet/dry zones), not all policies or options are available everywhere in the state, therefore, working with an experienced Minnesota Crop Insurance Agent is strongly recommended.

Crop Insurance & Programs available in Minnesota

Multi-Peril Crop Insurance (MPCI)

Multi-Peril Crop Insurance protects against risks like weather events, pests, and diseases, compensating for yield losses. Premiums are shared (producer + government). You choose coverage levels (e.g. 50–75%, sometimes up to 85%).

Supplemental Coverage Option (SCO)

(Changes for 2026 is not tied to the program selected from FSA)

“Layered” insurance at county level to cover part of your deductible. SCO can help fill in gaps, but eligibility depends on your FSA program choice (e.g. not allowed if you choose ARC for that crop).

Enhanced Coverage Option (ECO)

Offers additional county-level protection up to 95%. Can help you reach higher effective coverage by insuring part of your deductible. Premiums are shared.

Noninsured Crop Disaster Assistance Program (NAP)

For crops not eligible for federal crop insurance. A backup option when your specific crop doesn’t have an MPCI policy. (This is sold through FSA and Not Agents).

Revenue Protection (RP)

Revenue Crop Insurance combines yield and price protection, safeguarding farmers from both production shortfalls and market price declines, ensuring greater financial stability. Insures against loss due to low yield or low price (or both). Often a preferred option because it covers both yield and price risk.

Harvest Price Exclusion (RP-HPE)

Similar to Revenue Protection but excludes the benefit of price increases at harvest. Sometimes it has a lower premium, but you lose coverage if harvest price rises above projected.

Area / County Plans (Area Risk / ARPI)

Based on county yields and revenue rather than individual farm results. More predictable, less paperwork, but your farm might suffer loss while county doesn’t (so no indemnity).

Special Endorsements / Options

Post-Application Coverage Endorsement (PACE), Replant coverage, & Added Individual Modifier (AIM) fill niche risks. For example, PACE is available now in Minnesota for corn to protect when adverse conditions prevent timely nitrogen application. Replant or AIM let you cover extra risk at key times.

Yield Protection (YP)

Insures only yield losses (doesn’t cover price declines). Simpler, sometimes lower cost, but offers less protection if markets collapse.

Margin Coverage Option (MCO)

MCO is a crop insurance endorsement offered by the USDA’s Risk Management Agency (RMA) starting in the 2026 crop year. It provides area-based protection against declines in operating margin (i.e. revenue minus input costs) rather than simply yield or price. It attaches to an underlying crop insurance policy such as RP, RP-HPE, YP, or APH. MCO is available only in select counties and only for certain crops (for 2026: corn, soybeans, spring wheat, cotton, grain sorghum, rice).

Crop-Hail Insurance

Crop Hail Insurance provides financial protection for crops damaged by hail. This coverage compensates farmers for the loss in yield or quality caused by hailstorms, ensuring they are financially supported in the event of significant damage. It can be tailored to specific crops and provides a safety net when hail damage threatens crop production and market value. Named Peril Insurance - Covers hail, fire, wind damage, and sometimes transit.

Important Deadlines for Crop Insurance in Minnesota

For many major crops (corn, soybeans, beets, small grains, forage), the sales closing date in Minnesota is March 15 for the coming crop year.
Enrollment in commodity safety net programs (ARC / PLC) has its own deadlines (in Minnesota for 2025, April 15) and these elections can affect your eligibility for certain crop insurance endorsements (like SCO).
If planting is delayed (due to weather, etc.), you may face reductions in your guarantee under “late planting” or “prevented planting” clauses.
In extreme cases, prevented planting (i.e. you can’t plant at all) is covered under many policies — but the payment is typically less than full value (e.g. 60% for soybeans, 55% for corn, depending on policy).
For late planting: some policies allow planting into a “late planting period” with reduced guarantees; beyond that, guarantee often falls to the same as the prevented planting level.
Always maintain good records (weather, planting dates, damage, communications with agent) to support loss claims. RMA policies are strict on documentation.

Questions to ask your Minnesota Crop Insurance Agent

Coverage level – what % of expected yield or revenue is insured?
Price election / projected vs harvest price – how is price risk handled?
Premium rates & subsidy – how much will you pay vs government support?
Deductible / how much loss you absorb
What risks are excluded — e.g. damage from poor management, lack of inputs, disease from prior overuse, etc.
Endorsements / add-ons — e.g. PACE, AIM, replant, etc.
Area vs individual yield basis — risk tradeoffs
How your FSA / ARC / PLC choices affect eligibility for SCO or other options
Local availability — some policies or revenue options may not be available in all counties.

Agent reputation & experience — local knowledge matters, especially in understanding county yield data, historical losses, and local risk factors.

Minnesota Crop Insurance Challenges

The “best” policy on paper may not perform well if local microclimate or field variation causes you to deviate from county averages (especially for area plans).
Premiums and indemnities depend heavily on how well your yield history (Actual Production History, APH) is documented and how it compares with county or state benchmarks.
Some endorsements (like PACE or AIM) are newer or have restrictions; check whether your county or crop is eligible.
The interaction with FSA / ARC / PLC can be tricky: choosing one may limit your options for crop insurance endorsements (notably SCO).
Late planting and prevented planting rules can reduce guarantees or payments in ways that catch growers off guard.
Over-insuring (paying too much premium) vs under-insuring (leaving big risk) is a balance.
Always check that the agents you deal with are approved for MPCI / RMA and familiar with state/county specifics.