Which of the following statements is NOT true regarding the Group Risk Plan (GRP)?

The statement that GRP is always accepted by lenders as collateral is not true. In practice, lenders often have specific requirements and preferences regarding the type of insurance they accept as collateral. While GRP can provide a safety net for producers, its acceptance by lenders can depend on various factors, including the lender's policies, the perceived stability of county-level yields, and whether the lender is familiar with GRP's structure.

In contrast, the other statements about GRP are accurate. Producers are indeed allowed to purchase both GRP and MPCI coverage for the same crop year, providing them with multiple layers of protection for their crops. Lenders typically do have reservations about accepting GRP as collateral due to the reliance on county yields rather than individual farm yields, which can make GRP less attractive to them. Additionally, GRP coverage is designed to provide insurance based on county yields, which is a unique feature of this insurance plan compared to individual coverage plans. Understanding these nuances helps clarify why certain aspects of GRP might be less favorable or reliable from a lender's perspective.