Which of the following statements about Crop-Hail insurance is FALSE?

The statement regarding Crop-Hail insurance being subsidized by the Federal Crop Insurance Corporation (FCIC) is a misrepresentation of how this specific type of insurance operates. Crop-Hail insurance is primarily offered through private insurers and is not subsidized by the FCIC, distinguishing it from federally subsidized crop insurance programs.

In contrast, Crop-Hail insurance does indeed have other characteristics that support the correctness of the remaining statements. It is rated on an acreage basis, meaning that the cost of insurance is determined by the number of acres being insured rather than the value of the crop. This assessment method allows for more tailored premiums based on specific crop risks. Additionally, Crop-Hail insurance is widely available from private insurance companies, giving farmers various options when selecting their coverage.

Furthermore, this type of insurance provides coverage not only for hail damage, which is its primary focus, but also extends to other perils like fire, lightning, and wind, offering a broader protection mechanism for crop producers against various risks that could impact their yields. These attributes clarify the context of Crop-Hail insurance and highlight the inaccurate nature of the statement regarding its subsidization.