After the final planting date, how much is the insurance amount reduced per day under an MPCI policy?

Under a Multi-Peril Crop Insurance (MPCI) policy, the insurance amount is reduced by 1% per day for up to 25 days following the final planting date. This reduction reflects the increased risk associated with late planting, as the potential for lower yields due to missed optimal planting windows rises. The policy is designed to encourage timely planting and mitigate losses for both farmers and insurers.

It's important to understand the rationale behind the 25-day limit. This timeline provides a structured approach to how insurers assess the increased risk and manage claims. Late planting can result in significantly diminished returns, which is why the policy specifically outlines this percentage reduction as a standard practice across many areas.

The other choices outline different percentages or timeframes that do not align with the standard MPCI terms recognized by most insurance providers. Thus, the 1% per day deduction for up to 25 days is the accepted industry standard, reflecting sound agricultural risk management principles.