South Dakota Crop Insurance Practice Exam

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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!

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Who is responsible for determining the Projected Price and Harvest Price in crop insurance?

The Producer
The Insurance Agency
CEPP Commodity Exchange Price Provisions
The Federal Government

The correct answer is: CEPP Commodity Exchange Price Provisions

The correct choice is that the determination of the Projected Price and Harvest Price in crop insurance is the responsibility of CEPP Commodity Exchange Price Provisions. These prices are crucial components of revenue protection and other insurance plans, as they help to establish the value of the insured crop at different points in the growing season. The Projected Price is established before the planting season based on market prices and is used to calculate the coverage levels for the insurance. Similarly, the Harvest Price is determined at harvest time and reflects the actual market price of the crop. Both of these prices are derived from relevant commodity exchange market data, which is what CEPP encompasses. Understanding that the federal government provides oversight and guidelines for crop insurance programs, it does not directly set these specific prices. Likewise, while producers and insurance agencies may use these prices to evaluate their policies and claims, the determination originates from market conditions as specified by CEPP, making it the authoritative source for these metrics in crop insurance calculations.