What percentage of expected value can crops be insured for?

The correct answer, which is 75%, reflects the standard coverage level set for insuring crops under federal crop insurance programs in the United States, such as the Actual Production History (APH) policy. This level of coverage means that an insured farmer can receive compensation for their crops if they suffer a loss, up to 75% of the expected value of the crop. This percentage is designed to balance risk for both the insurance provider and the insured, providing adequate coverage for farmers while also ensuring that the program is sustainable.

Farmers have the option to select coverage levels higher than 75%, but these higher levels generally come with increased premiums and specific eligibility requirements. This set percentage is significant because it establishes a baseline for risk management in agriculture, enabling farmers to hedge against potential losses due to unforeseen events like weather issues, pests, or diseases.

The other options reflect different coverage levels that may exist under specialized policies but do not represent the baseline for standard crop insurance under the APH program.