South Dakota Crop Insurance Practice Exam

Growers with one year of production records are eligible to receive a percentage of the T (or transitional) yield for the other three years based on their available production history. In this case, the correct percentage is 80%. This transitional yield approach is designed to provide a safety net for newer growers who may not have extensive production records. The transitional yield helps ensure that newer producers have a fair contribution to their insurance policies even when they lack a full history of production data.

The 80% yield allows these growers to have a more realistic estimation of what they might expect from their crops, considering variability in production due to factors such as weather, pests, or market changes. This percentage is significant enough to provide assurance without being overly generous, which helps maintain balance within the insurance program.