What is the allowable range for coverage percentage in Yield Protection (YP)?

The allowable range for coverage percentage in Yield Protection (YP) is between 50% and 85%. This range is designed to provide a balance that allows farmers to secure some level of protection against yield losses while also considering the associated costs of insurance premiums. By setting the minimum coverage at 50%, it ensures that farmers have a baseline level of risk management, while the maximum of 85% allows them to cover a significant portion of their potential yield loss without going to the highest level of protection, which can be more costly.

This range encourages farmers to assess their specific risk tolerance and choose a percentage that adequately reflects their operational needs and financial situation. Coverage percentages below 50% are generally not offered, as they would limit the effectiveness of crop insurance to act as a safety net. The choice of 85% as the upper limit is also significant because it provides a cap that still allows for enough variation within the market to suit different types of farms and their diverse risk profiles.