Which insurance plan pays losses based on county revenue calculated using the higher of projected or harvest price?

The correct answer is GRIP HRO, which stands for Group Risk Income Protection with Harvest Revenue Option. This insurance plan is designed to provide coverage based on the county’s revenue, calculated using the higher of the projected price or the harvest price. By focusing on county-level revenue, GRIP HRO allows farmers to protect their income against downturns in market prices or crop yields, reflecting more effectively the actual income situation in a local market.

The higher of projected or harvest price approach helps ensure that farmers receive compensation that is aligned with current market conditions, which is particularly beneficial if the harvest price is greater than the projected price at the time of planting. This option serves to provide a safeguard against revenue drops rather than just yield losses.

Other options, such as GRP (Group Risk Plan), focus on yield rather than revenue, making them less aligned with the question's emphasis on revenue calculations. Similarly, MPCI (Multi-Peril Crop Insurance) typically provides coverage on a yield basis or revenue basis but does not specifically specify the use of county revenue in the manner described. LRP (Livestock Risk Protection) is not relevant here as it specifically addresses livestock rather than crops. Therefore, GRIP HRO is the most suitable choice as it directly