Multiple choice

Which of the following factor(s), is/are a yield reducing factor?

Directions: Read the following passage and answer the given question.

AGRICULTURAL INSURANCE SCHEME
More than half a dozen farm insurance schemes have been tried out in the past two and a half decades, hut no one has worked. Successive insurance models proved unsustainable because they were neither economically viable, nor suited to cover the varied risks that beset crop farming. The implementing insurance companies have invariably ended up paying compensation several times the premium collected. The existing National Agricultural Insurance Scheme (NAIS), which is now sought to be replaced with its fresh avatar, has had to cope with claims of over Rs. 5,730 crore, more than three times the premium income of Rs. 1,700 crore. The parallel farm “income insurance” scheme, aimed at covering risks ranging from a drop in yield to poor prices, tried out on a pilot basis in the last few crop seasons, has also not worked.
What needs to be realised is that agricultural insurance is an inherently complicated business because of the many risks involved in farming. The formidable functional and practical problems that ensue relate to the extent of area that should constitute the unit for assessing damage, and the bench-mark for assessing the loss incurred, on the basis of the income that might have accrued to the farmer in the absence of yield-reducing factors like adverse weather, pest, disease, or natural disasters.

 

  1. Adverse weather

  2. Natural disaster

  3. Pest and disease

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The passage mentions 'yield-reducing factors like adverse weather, pest, disease, or natural disasters.' It explicitly lists all four factors together. Therefore all the options (A, B, C) are yield-reducing factors, making 'All of these' the correct answer. Agricultural insurance covers these multiple risks.

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