What type of crop insurance covers revenue based on county performance?

Prepare for the Kansas Crop Insurance Test. Use multiple choice questions accompanied by hints and explanations. Ensure your readiness for the exam!

The correct answer is the Group Risk Plan. This type of crop insurance provides coverage based on the overall revenue performance of a county rather than the individual farmer's own yield. The plan measures the county's average yield against established expected yield levels, allowing farmers to receive indemnity payments if the county's actual yield falls below the expected level.

This approach helps farmers mitigate risks associated with widespread adverse weather conditions or other factors that might impact crop yields collectively within a region. Group Risk Plan is particularly suitable for crops that are typically grown throughout a region, making county-level performance a relevant measure for assessing risk and financial protection.

In contrast, other forms of crop insurance, such as Multi-Peril Crop Insurance, focus on individual farm-level yields and specific risks that may affect a farmer's particular situations, like drought, disease, or natural disasters. Income Protection Insurance is geared towards insuring against loss of revenue but is more focused on a farm's production and price risks. Whole Farm Revenue Protection offers coverage based on the total revenue from all commodities on the farm, rather than just one crop or county performance.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy