Which type of insurance provides protection specifically against loss of crop yield?

• A. Crop Hail Insurance
• B. Crop Yield Insurance
• C. Multi-Peril Crop Insurance
• D. Revenue Protection Insurance

Answer: (B)

The correct answer is Multi-Peril Crop Insurance. This type of insurance is designed to protect farmers against various risks that could lead to a loss of crop yield, including natural disasters like droughts, floods, and pests. Multi-Peril Crop Insurance covers a broad range of potential threats, thus providing comprehensive coverage for farmers' yields rather than focusing on specific instances or determinants of loss.

While Crop Hail Insurance specifically covers crop damage due to hail, it does not offer the complete protection against yield loss from other perils that Multi-Peril Crop Insurance does. Crop Yield Insurance, as suggested in the answer, is not a standard category of insurance in this context and could be misleading as terminology often overlaps with Multi-Peril coverage. Revenue Protection Insurance, on the other hand, protects against loss of revenue from production shortfalls as well as price decreases, but it does not solely focus on the yield aspect. Therefore, Multi-Peril Crop Insurance is the more appropriate choice for protecting against loss of crop yield comprehensively.