South Dakota Crop Insurance Practice Exam

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What is the price election range for Yield Protection?

45-85%
55-100%
50-90%
60-100%

The correct answer is: 55-100%

The price election range for Yield Protection is established to allow farmers to select the level of coverage they feel is appropriate for their potential yield and the associated price. This type of insurance typically permits an election range from 55% to 100% of the established price, which enables producers to tailor their coverage based on their specific production needs and risk management strategies. Selecting this range is crucial as it directly influences the indemnity payments a farmer may receive in the event of a loss. By providing coverage options from 55% to 100%, the program offers a wide scope of flexibility for farmers to balance the premium cost against their risk tolerance and expected yield stability. Understanding this range is essential for effective crop management and financial planning within the agricultural sector in South Dakota. The other ranges mentioned do not align with the established parameters for Yield Protection, as they are either too low or exceed the recognized limits. Thus, focusing on the range of 55-100% captures the necessary breadth of options available to insured farmers.