South Dakota Crop Insurance Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

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!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the primary focus of the Yield Protection Plan?

Revenue generation during a loss
Protection against yield loss
Ensuring total crop security
Safeguarding against market fluctuations

The correct answer is: Protection against yield loss

The Yield Protection Plan is primarily designed to protect farmers from losses in crop yield due to various factors such as adverse weather conditions or disease. This type of insurance specifically addresses the amount of crop produced compared to the established yield history for that crop on a particular farm. By focusing on yield loss, this plan ensures that if a farmer's harvest falls significantly below the expected levels, they can receive financial compensation based on their average historical yields, thus mitigating the impact of such losses. While options like revenue generation during a loss or ensuring total crop security might seem beneficial, they do not capture the specific aim of the Yield Protection Plan, which is about safeguarding production levels rather than the overall financial or market conditions associated with the crop. Furthermore, the plan does not directly address market fluctuations, which are better covered under revenue protection plans that consider both yield and price in compensation calculations.