What is the primary goal of crop insurance?

The primary goal of crop insurance is to protect farmers against crop loss. This financial protection helps mitigate the risks that farmers face due to unforeseen circumstances such as natural disasters, adverse weather conditions, pest infestations, or disease outbreaks that can significantly impact crop yield. By having crop insurance, farmers can recover some of their lost income, which allows them to sustain their livelihoods and continue producing food.

The other options focus on aspects that, while relevant to agriculture, do not align with the essential function of crop insurance. Funding for new equipment purchases or increasing crop prices is not the direct role of insurance policies. Similarly, while environmental sustainability is an important consideration in modern farming practices, crop insurance is specifically designed to address financial losses rather than directly promoting environmental goals.