What does DDB represent in crop insurance?

In the context of crop insurance, DDB stands for "Deferred Premium Benefit." It is a program that allows farmers to defer a portion of their premiums until later in the policy period. The percentage represented by DDB, such as 20%, indicates how much of the premium cost can be deferred.

Choosing 20% as the correct answer signifies that under certain policies, farmers can benefit from this deferred amount. This feature can be particularly advantageous for farmers facing cash flow issues or those wanting to manage their operational costs more effectively throughout the crop season. By deferring this portion of the premium, producers can ensure that they still receive the necessary coverage without the immediate financial burden, thus allowing them to allocate their funds more strategically during critical times of the growing season.