South Dakota Crop Insurance Practice Exam

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How many acres must be replanted to qualify for replanting payment?

Only 10 acres
At least 20 acres
Less than 20 acres
At least 20 acres or 20% of the insured planted acreage

The correct answer is: At least 20 acres or 20% of the insured planted acreage

To qualify for a replanting payment, the requirement is that at least 20 acres must be replanted or the amount replanting must equal 20% of the insured planted acreage, whichever is greater. This guideline ensures that the replanting payment supports farmers who face significant loss, reflecting both the scale of their operation and the impact of adverse conditions such as pests or weather. This rule helps maintain the financial stability of farming operations by providing compensation that is proportional to the scale of the loss. Therefore, the inclusion of both a minimum acreage and a percentage of planted acreage in the criterion ensures that farmers are adequately supported in their replanting efforts, encouraging recovery from crop failures without creating undue burden or ineligibility from minor losses.