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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What is the administrative fee producers must pay for catastrophic risk protection for each crop insured in each county?

$100
$200
$300
$400

The correct answer is: $300

The administrative fee that producers must pay for catastrophic risk protection for each crop insured in each county is set at $300. This fee is part of the Federal Crop Insurance program, specifically designated for those who elect to obtain catastrophic (CAT) coverage. CAT coverage provides a basic level of protection against loss of production due to natural disasters, ensuring that producers can receive some compensation to help manage their risks. The amount is standardized to ensure equal access to protection across different counties and crops, reflecting the government's effort to support farmers facing crop failures. Understanding the administrative fee is crucial for producers as it represents an essential part of their budgeting and financial planning when considering their coverage options.