South Dakota Crop Insurance Practice Exam

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What is the coverage level range for ARPI?

60-80%
70-90%
40-70%
80-100%

The correct answer is: 70-90%

The coverage level range for Actual Revenue Protection Insurance (ARPI) is indeed between 70% and 90%. This particular range is designed to provide a sufficient level of protection against revenue losses that can occur due to a decline in either yield or market prices. By covering this range, ARPI allows producers to choose a level of assurance that balances their risk tolerance with their potential financial needs, ultimately enabling them to better manage the economic uncertainties of farming. The range of 70-90% reflects a balance that is common in revenue protection products, giving farmers a robust safeguard while still leaving room for varying degrees of exposure. This makes it particularly suitable for farmers who want to mitigate the risk of both price fluctuations and reduced yields.