South Dakota Crop Insurance Practice Exam

What does RP HPE stand for in crop insurance terms?

1. Revenue protection high price excluded

2. Revenue protection harvest price excluded

3. Revenue protection high yield excluded

4. Revenue protection heavy payment excluded

The correct answer is: Revenue protection harvest price excluded

Revenue Protection Harvest Price Excluded refers to a specific type of crop insurance policy that offers protection against loss of revenue due to a decline in the price of an insured crop at the time of harvest. This type of insurance allows producers to receive payments based on the initial projected prices rather than the final harvest prices. This feature is crucial for farmers because it provides a level of security against fluctuations in market prices, ensuring that they can manage their revenue effectively. In this context, the "harvest price excluded" aspect means that during the claims process, the insured will not benefit from any increase in price at harvest time; they are instead compensated based on the projected price established at the beginning of the insurance period. Such policies are designed to favor those concerned about potential price declines while navigating the uncertainties of agricultural production.