Which of the following is true regarding crop insurance?

Crop insurance is designed to protect farmers against risks specifically associated with crop production. This includes a range of issues such as losses from drought, flooding, pests, diseases, and other factors that can negatively impact crop yields. By focusing on production-related risks, crop insurance provides financial support to farmers, enabling them to manage these unpredictable events and sustain their farming operations.

The other choices reflect misconceptions about crop insurance. For example, while crop insurance can help mitigate some risks related to natural disasters, it does not cover all potential natural disaster scenarios, as some events might not meet the eligibility criteria. Additionally, premium payments are typically required for insurance coverage, as they contribute to the pool of funds used to pay claims. Moreover, crop insurance is not limited to certain seasons; it is available throughout the year but may have specific enrollment periods that farmers need to adhere to. Understanding that crop insurance primarily addresses production risks helps grasp its critical role in agricultural risk management.