South Dakota Crop Insurance Practice Exam

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What is the range of coverage levels for Revenue Protection?

30-70%
50-85%
85-100%
40-90%

The correct answer is: 50-85%

Revenue Protection is a type of crop insurance that provides coverage based on the revenue derived from the insured crop. The coverage levels for Revenue Protection are set by the Federal Crop Insurance Corporation and are designed to help farmers mitigate risks associated with price fluctuations and yield losses. The correct range of coverage levels for Revenue Protection is between 50% and 85%. This means farmers can select a coverage level that reflects their risk tolerance, allowing for flexibility in protecting their income based on their specific financial needs and market conditions. The chosen coverage percentage indicates the amount of revenue that is guaranteed against loss, providing assurance to producers in times of unpredictability in crop production and market prices. The other options fall outside this defined range. The lower limit at 30% and the upper limit at 100% do not align with the established coverage levels for this insurance product, making them incorrect choices in this context.