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Which insurance product is designed to protect the revenue of farmers?

  1. Crop Hazard Insurance

  2. Revenue Protection Insurance

  3. Farmers' Liability Insurance

  4. Workers Compensation Insurance

The correct answer is: Revenue Protection Insurance

Revenue Protection Insurance is specifically designed to safeguard the income of farmers by providing them with a financial safety net in the event of reduced crop yields or lower market prices. This type of insurance allows farmers to secure a certain level of revenue based on the expected yield and price for their crops, ensuring they can maintain their operational viability even when faced with unfavorable conditions. This insurance product takes into account both the quantity of the crop produced and the market price, thereby offering a comprehensive approach to protecting farmers’ finances compared to other products. In contrast, other options may cover different aspects of farming—such as liability protection or worker’s compensation—but do not focus specifically on protecting income through revenue assurance.