South Dakota Crop Insurance Practice Exam

The Yield Protection Plan protects against yield loss but not what?

1. Market loss

2. Revenue loss

3. Quality loss

4. Insured loss

The correct answer is: Revenue loss

The Yield Protection Plan is designed specifically to cover yield losses due to adverse weather conditions, pests, and plant disease, but it does not provide coverage for revenue loss. Revenue loss occurs when the market prices for the crops decrease, meaning that even if the yield is unaffected, a grower may still face financial losses due to lower selling prices. This plan focuses solely on yield, which means growers need to consider additional insurance options, such as revenue protection plans, if they seek coverage against fluctuations in market prices that impact total revenue. Therefore, while the Yield Protection Plan addresses yield concerns, it does not encompass the broader scope of revenue loss related to market conditions.