What is one consequence of the late planting period on crop insurance?

• A. Reduction in yield guarantee
• B. Increased premiums
• C. Loss of coverage
• D. Decreased liability

Answer: (A)

The reduction in yield guarantee during the late planting period is tied to the agricultural industry's acknowledgment that late planting can negatively impact crop growth and overall yield. When crops are planted later than the optimal timeframe, they may not reach maturity before adverse weather conditions or seasonal changes affect them. This can lead to lower yields than what would be expected if planted on time.

As a result, crop insurance policies typically adjust yield guarantees based on the timing of the planting. If the planting is delayed beyond a certain date, insurers apply a lower yield guarantee, reflecting the increased risk associated with the later growing schedule. This adjustment ensures that the insurance coverage aligns more closely with the actual agricultural risk faced by the farmer, thus impacting the amount that farmers can expect to receive in the event of a loss.

The other options, while relevant to crop insurance, do not directly relate to the specific consequence of late planting as illustrated in the context of yield guarantees. Expanding on these:

• Increased premiums during a late planting period might occur based on risk assessments, but the yield guarantee reduction is a more direct consequence.

• Loss of coverage could happen under certain scenarios, but it isn't a direct consequence of late planting itself.

• Decreased liability refers to the insurance company's risk exposure, which