What is the range of permitted percent of coverage in the Area Risk Protection Insurance Policy (ARPI)?

The Area Risk Protection Insurance Policy (ARPI) is designed to provide insurance coverage based on the average yield of a particular area rather than on individual farm production. The range of permitted percent of coverage for ARPI is structured to provide flexibility for farmers while ensuring adequate protection against losses due to various risks such as weather or market conditions. The correct answer indicates that coverage can be set between 70% and 90% of the expected production.

This range aligns with the program's goal of balancing risk management with affordability. By allowing a coverage level starting from a relatively high base of 70%, farmers can choose a policy that meets their individual risk tolerance and operational needs. Going beyond this range could introduce complications, as higher percentages may not be sustainable within the program's guidelines or financial support mechanisms.

Other ranges specified in the other options do not reflect the actual permitted percent of coverage for ARPI and do not align with the established risk management standards for crop insurance.