Which type of insurance is designed to protect a farmer's financial investment in their crops?

• A. Crop Yield Insurance
• B. Homeowners Insurance
• C. Crop Insurance
• D. Poultry Insurance

Answer: (C)

Crop insurance is specifically designed to protect a farmer's financial investment in their crops by covering the loss due to various risks such as adverse weather conditions, pests, and diseases. This type of insurance provides a safety net for farmers, allowing them to recover some of their investment should their crops be affected by these unpredictable factors.

Crop insurance can vary in coverage and the types of policies available may include options such as yield protection, revenue protection, and area risk protection, among others. These policies not only help mitigate the financial impact but also contribute to the stability of the agricultural sector by enabling farmers to continue their operations despite potential losses.

Homeowners insurance is focused on protecting residential property and personal belongings, while poultry insurance covers specific risks related to poultry farming. Crop yield insurance, while related to crops, may be better categorized as a specific type of crop insurance rather than the broader term. Hence, crop insurance stands out as the correct answer due to its comprehensive coverage for the threats specifically faced by crop producers.