Which of the following statements is accurate regarding crop insurance?

Crop insurance is designed to protect farmers against the risk of crop loss due to various factors, but its primary goal is to stabilize farm income during challenging years. When unforeseen events such as drought, excessive rainfall, or pests occur, crop insurance provides financial assistance, which helps farmers manage their income despite these adverse conditions. This safety net is essential for promoting agricultural stability and enabling farmers to plan for the future, knowing they have support in case of environmental hardships.

While crop insurance does cover specific natural disasters, it is not limited to those events, and it does not cover all forms of market variability, such as fluctuations in commodity prices. Additionally, participation in crop insurance is not mandated for all producers, as farmers have the choice to decide whether or not to purchase coverage based on their individual circumstances. This flexibility allows them to tailor their risk management strategies effectively.