What coverage levels are available under the area risk protection insurance policy (ARPI)?

The area risk protection insurance policy (ARPI) is designed to provide coverage to producers based on the overall performance of a specific area rather than an individual farm's production. The coverage levels available under ARPI typically range from 70% to 90%. This range is established to provide a balance between assuring producers against significant financial loss and managing the risk and financial exposure for the insurance providers.

This policy is particularly advantageous as it considers the average yields in a designated area, allowing farmers to benefit from collective risk management while avoiding the complications of assessing individual farm risk. Therefore, the selection of coverage levels from 70% to 90% aligns well with the objectives of mitigating risk for a broader agricultural community within the specified area. This is an essential feature for farmers looking to manage potential losses without needing to achieve perfect production outcomes on their operations.