South Dakota Crop Insurance Practice Exam

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Prepare for the South Dakota Crop Insurance Exam. Study smart with flashcards and multiple choice questions; all questions feature hints and detailed explanations. Ace your exam effortlessly!

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On an APH plan, the price election is set between which two percentages of the crop price?

50% and 80%
55% and 100%
60% and 90%
70% and 100%

The correct answer is: 55% and 100%

In the context of the Actual Production History (APH) plan for crop insurance, the price election is an important factor that determines the coverage level for the insured crop. The price election is designed to provide a safety net for farmers by ensuring they are compensated for a portion of their expected crop revenue based on predetermined price ranges. The correct answer specifies that the price election is set between 55% and 100% of the approved crop price. This range allows producers to choose a specific level of coverage that meets their financial needs, providing flexibility based on risk tolerance. By having a minimum price election of 55%, this option guarantees a foundational level of price protection, while the upper limit of 100% means that farmers can fully protect against declines in crop prices. This structure is critical as it underlines the risk management aspect of the program, giving producers the agency to tailor their insurance according to their expectations for market conditions. The selected range also reflects the broader objective of agricultural insurance to balance the financial needs of farmers with the realities of market fluctuations. Thus, the chosen interval supports farmers in managing their production risks effectively.