Which form of insurance covers crop profitability losses due to various factors?

• A. Crop Yield Insurance
• B. Farm Property Coverage
• C. Crop Insurance
• D. Whole Farm Insurance

Answer: (C)

Crop insurance is specifically designed to protect farmers from losses in crop yield and profitability that may occur due to a range of factors such as adverse weather conditions, pests, diseases, and other unforeseen circumstances. This form of insurance typically provides financial compensation for farmers when their crop production falls below a certain level, allowing them to manage the risks associated with agricultural operations.

While crop yield insurance might imply a focus on the amount of crops produced, crop insurance encompasses a broader scope, including both yield and price declines. Farm property coverage primarily insures physical assets like buildings and equipment rather than crop profitability, and whole farm insurance offers a more comprehensive blanket coverage but is not exclusively focused on crop profitability losses. Thus, crop insurance is the correct choice as it directly addresses the impact on profitability due to various agricultural risks.