What does Crop Revenue Insurance combine to protect against losses in crop value?

• A. Wind and Hail Insurance
• B. Crop-yield and price insurance
• C. General Liability and Property Insurance
• D. Crop Hail and Workers Compensation Insurance

Answer: (B)

Crop Revenue Insurance is specifically designed to provide financial protection to farmers against the potential loss of revenue due to a combination of decreased crop yield and falling market prices. This type of insurance essentially merges two critical aspects of risk management in agriculture: crop yield and the price of the crops at market.

When a farmer purchases Crop Revenue Insurance, they are safeguarding against scenarios where either the quantity of the crop harvested is below the expected yield (due to factors like adverse weather conditions, disease, or pests) or when market prices drop, which can diminish the overall revenue they would earn from their crop sales. The insurance works by using a predetermined guarantee of revenue based on the farmer's historical data alongside market prices.

This feature makes it distinct from other types of insurance that may cover specific physical damages (like wind or hail) or general liability matters that are unrelated to the actual revenue derived from crops. Through this combination, Crop Revenue Insurance plays a crucial role in stabilizing the income of agricultural producers and supporting the financial health of farming operations.