What kind of loss does the Revenue Protection Plan protect against?

The Revenue Protection Plan is designed to safeguard against losses in both price variance and low yields, making it a comprehensive option for farmers looking to protect their income. This type of insurance is particularly beneficial because it accounts for the potential reduction in revenue that can occur from fluctuations in market prices as well as from lower-than-expected yields due to various factors like pests, disease, or adverse weather conditions.

By covering both aspects, policyholders can receive compensation for loss of income that might not be covered if only yield losses were considered. For example, if the price of a crop drops significantly while the yields remain average, farmers can still experience financial hardship, which this plan addresses. Thus, it offers a more robust safety net compared to plans that focus solely on one aspect of loss.