Which type of coverage requires an annual fee of $30 per crop per county?

Study for the North Dakota Crop Insurance Test. Use flashcards and multiple choice questions with hints and explanations to get ready for your exam!

Buy-up coverage is a specific level of crop insurance that allows producers to purchase additional protection beyond the basic coverage offered by federal crop insurance programs. The requirement for an annual fee of $30 per crop per county is associated with this type of coverage. This fee typically applies to ensure that the policy is active and that the farmer is engaged in the crop insurance program for the current growing season.

This coverage not only helps protect against yield losses but can also provide a higher level of coverage based on the individual producer's production history, allowing for better risk management in farming operations. By enhancing their level of protection through this additional fee, farmers can safeguard their investments in crops, which is particularly significant in areas where adverse weather conditions or pests could lead to substantial losses.

Other types of coverage, such as basic coverage, CAT coverage, and comprehensive coverage, have different structures, premium calculations, and fee requirements, which do not include the specific $30 annual fee for each crop per county, highlighting why buy-up coverage is the correct choice in this context.

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