What triggers a payment under the GRIP plan?

The correct trigger for a payment under the Group Risk Income Protection (GRIP) plan is when the published county yield falls below the established trigger revenue. GRIP is designed to protect farmers against a decline in income due to lower yields in their county. The program calculates the expected revenue based on historical county yields and prices, setting a specific revenue threshold or trigger.

When the actual county yield is reported below this trigger revenue, it indicates that the overall production in that area has declined enough to warrant a payment, as it suggests that many farmers in that region are likely facing income losses. It's important for farmers to understand that GRIP payments are not based on individual farm performance, but on collective county performance—the payments aim to mitigate widespread risk affecting entire agricultural communities.

The other options describe scenarios that do not align with the GRIP payment structure. For instance, if personal farm revenue exceeds the trigger revenue, there would be no payment due to a sufficient revenue generation on the individual level. Payments based on individual yields or meeting the trigger revenue do not reflect how community risk is assessed in this insurance format. Thus, understanding that the county yield below the trigger revenue is the primary factor driving the payout is crucial for recognizing the purpose and function of GRIP in agriculture