South Dakota Crop Insurance Practice Exam

What are the three insurance plans available under the Common Crop Insurance Policy?

1. Basic Plan, Optional Plan, Whole Farm Plan

2. Yield Protection, Revenue Protection, Revenue Protection with Harvest Price Excl

3. Crop Loss Insurance, Yield Loss Insurance, Whole Farm Insurance

4. Standard Coverage, Enhanced Coverage, Comprehensive Coverage

The correct answer is: Yield Protection, Revenue Protection, Revenue Protection with Harvest Price Excl

The three insurance plans available under the Common Crop Insurance Policy are Yield Protection, Revenue Protection, and Revenue Protection with Harvest Price Excluded. Each of these plans serves different purposes and offers varied coverage relating to the financial risks faced by farmers due to crop loss. Yield Protection covers the loss in yield based on an established yield guarantee. This plan compensates producers when their actual production falls below the guaranteed level due to covered causes of loss like drought or disease. Revenue Protection offers a broader coverage by not only addressing yield loss but also considering price fluctuations. This means that if both yield and prices fall, the farmer could receive compensation based on either yield or revenue loss, depending on which is greater. Revenue Protection with Harvest Price Excluded specifies that the coverage is determined using the price at the time of planting rather than at harvest. This can protect farmers from drastic price drops after planting, ensuring their revenue remains stable compared to their initial projections. By covering these different aspects of risk, these plans enable farmers to safeguard their income against various adverse conditions that could impact their crops during the growing season. Other options listed might propose different names or combinations for coverage plans, but they do not accurately represent the official offerings under the Common Crop Insurance Policy.