Bloom Your Knowledge: North Dakota Crop Insurance Practice Test 2025 – Cultivate Confidence and Pass with Flying Colors!

Crop Revenue Coverage (CRC) is designed to protect farmers against the loss of revenue due to declines in both yields and prices. This type of insurance takes into account the revenue derived from the crop, providing a safety net when either production or market prices fall below established thresholds.

When a producer experiences low yields due to adverse weather, disease, or other factors, or if the market prices for their crops decrease, CRC steps in to cover the financial loss. This dual protection is particularly important in agriculture, where both production levels and market fluctuations can significantly impact a farmer's income.

The other options do not accurately reflect the purpose of CRC. Some may focus solely on one aspect, either yield or price, but CRC encompasses the risk associated with both. Understanding this integrated approach is crucial for farmers considering their risk management strategies and for those participating in crop insurance programs.