Which of the following is a feature of the Yield Protection plan?

Which of the following is a feature of the Yield Protection plan?

• A. Coverage only for organic crops
• B. Price guarantee based on average market prices
• C. Individual yield-based coverage
• D. Coverage for crop diseases only

Answer: (C)

The feature of the Yield Protection plan that stands out is its focus on individual yield-based coverage. This plan is designed to protect farmers from revenue losses due to a decrease in their crop yields, rather than fluctuations in market prices. Under the Yield Protection plan, the insurance is tied to the actual production of the crop collected throughout the year, offering policies that reflect the specific yield history of the insured farm. This individualized approach allows farmers to have tailored coverage that is more applicable and relevant to their unique agricultural situation. This contrasts with other options, as the coverage does not solely target organic crops, nor does it specify a price guarantee based on average market prices, which are characteristics more relevant to other types of crop insurance like Revenue Protection. Additionally, it does not limit coverage strictly to crop diseases, as this plan encompasses a broader protection mechanism focused on yield losses.

The feature of the Yield Protection plan that stands out is its focus on individual yield-based coverage. This plan is designed to protect farmers from revenue losses due to a decrease in their crop yields, rather than fluctuations in market prices. Under the Yield Protection plan, the insurance is tied to the actual production of the crop collected throughout the year, offering policies that reflect the specific yield history of the insured farm. This individualized approach allows farmers to have tailored coverage that is more applicable and relevant to their unique agricultural situation.

This contrasts with other options, as the coverage does not solely target organic crops, nor does it specify a price guarantee based on average market prices, which are characteristics more relevant to other types of crop insurance like Revenue Protection. Additionally, it does not limit coverage strictly to crop diseases, as this plan encompasses a broader protection mechanism focused on yield losses.