What does "prevented planting" insurance cover?

Prevented planting insurance is designed specifically to cover farmers for losses incurred when they are unable to plant their crops due to certain unfavorable conditions, such as excessive rainfall, flooding, or prolonged drought that affect the ability to prepare and plant fields. This type of insurance serves as a financial safety net for farmers who face situations that are beyond their control, preventing them from entering the planting phase despite their intentions to do so.

The choice regarding losses from pest damage pertains to crop health after it has been planted and does not address the situation of a farmer being unable to plant at all. Similarly, losses from crop theft and market price drops relate to financial impacts occurring after planting and during the crop lifecycle, rather than addressing the specific circumstances surrounding prevented planting. Thus, the focus of prevented planting insurance is solely on those weather-related conditions or unforeseen circumstances that hinder the ability to plant crops, making the second option the most accurate.