South Dakota Crop Insurance Practice Exam

What provisions does an ARPI policy NOT include?

1. Crop damage reimbursement

2. Prevented planting, late planting, or replant provisions

3. Debt guarantee

4. Immediate planting assistance

The correct answer is: Prevented planting, late planting, or replant provisions

An ARPI, or Actual Revenue Protection Insurance, policy is designed to protect the actual revenue of a farmer based on the price and yield of the crops. The core provisions of an ARPI policy typically include coverage for crop damage reimbursement, provisions for prevented planting, late planting, or replanting as these are all aspects crucial to ensuring that farmers can recover from various types of loss. In contrast, the provision that is not included in an ARPI policy is the aspect regarding debt guarantee. This means that the policy does not cover any debts that a farmer may carry, regardless of the performance of their crops or the insurance payout. Such guarantees are generally separate financial considerations that are not tied directly to an insurance policy focused on crop yields and revenue. Immediate planting assistance is also not a typical provision of an ARPI policy, as the focus is primarily on providing revenue protection rather than logistical support for planting activities. Thus, the correct answer hinges on understanding the scope and limitations of what the ARPI policy actually covers, differentiating it from other options that might not be relevant to the actual revenue protection intent of the insurance.