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CROP INSURANCE EXAM|QUESTIONS AND
ANSWERS WITH RATIONALE|GRDED
A+|100% CORRECT|2026 UPDATE
Q1. Which federal entity is responsible for supervising the
Federal Crop Insurance Corporation (FCIC)?
A) Internal Revenue Service (IRS)
B) Risk Management Agency (RMA)
C) Department of Commerce
D) Farm Service Agency (FSA)
Answer: B
Rationale: The Risk Management Agency (RMA) was established
in 1996 to operate and manage the FCIC, providing
administrative oversight and issuing the regulations that govern
the federal crop insurance program .
,Page 2 of 145
Q2. The Federal Crop Insurance Corporation (FCIC) was
created by which legislation?
A) The Agricultural Adjustment Act of 1933
B) The Federal Crop Insurance Act of 1938
C) The Farm Bill of 1996
D) The Food Security Act of 1985
Answer: B
Rationale: The Federal Crop Insurance Act of 1938 created the
FCIC to establish and administer the first federal crop insurance
program. The program was initially voluntary and focused on
major commodities .
Q3. Under the "One Big Beautiful Bill Act" (OBBBA) passed in
2025, what is the new statutory reference price for corn for the
2025–2031 crop years?
A) 3.70perbushelB)3.70perbushelB)4.10 per bushel
C) 5.03perbushelD)5.03perbushelD)6.35 per bushel
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Answer: B
Rationale: The OBBBA increased statutory reference prices by
10–20% for all farm program crops. The new statutory
(minimum) reference prices
are 4.10/buforcorn,4.10/buforcorn,10.00/bu for soybeans, and
$6.35/bu for wheat, effective for the 2025 through 2031 crop
years .
Q4. What is the "effective reference price" under the OBBBA?
A) The statutory minimum price set by Congress
B) The 5-year "Olympic" average market year average price
times 85%, capped at 15% above statutory reference price
C) The current spot market price
D) The futures market price on the sales closing date
Answer: B
Rationale: The effective reference price is based on the 5-year
"Olympic" average (dropping the high and low) market year
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average price from five previous crop years, multiplied by 85%
(.85). The effective reference price can be as much as 15%
above the statutory reference price. For 2025–2026, effective
reference prices
are 4.42/buforcornand4.42/buforcornand10.71/bu for
soybeans .
Q5. Under the OBBBA, the ARC-CO guarantee level has been
increased to what percentage of benchmark revenue?
A) 86% (unchanged)
B) 90% (up from 86%)
C) 95%
D) 100%
Answer: B
Rationale: The ARC-CO guarantee level is increased to 90% of
the calculated benchmark revenue (benchmark county yield ×
CROP INSURANCE EXAM|QUESTIONS AND
ANSWERS WITH RATIONALE|GRDED
A+|100% CORRECT|2026 UPDATE
Q1. Which federal entity is responsible for supervising the
Federal Crop Insurance Corporation (FCIC)?
A) Internal Revenue Service (IRS)
B) Risk Management Agency (RMA)
C) Department of Commerce
D) Farm Service Agency (FSA)
Answer: B
Rationale: The Risk Management Agency (RMA) was established
in 1996 to operate and manage the FCIC, providing
administrative oversight and issuing the regulations that govern
the federal crop insurance program .
,Page 2 of 145
Q2. The Federal Crop Insurance Corporation (FCIC) was
created by which legislation?
A) The Agricultural Adjustment Act of 1933
B) The Federal Crop Insurance Act of 1938
C) The Farm Bill of 1996
D) The Food Security Act of 1985
Answer: B
Rationale: The Federal Crop Insurance Act of 1938 created the
FCIC to establish and administer the first federal crop insurance
program. The program was initially voluntary and focused on
major commodities .
Q3. Under the "One Big Beautiful Bill Act" (OBBBA) passed in
2025, what is the new statutory reference price for corn for the
2025–2031 crop years?
A) 3.70perbushelB)3.70perbushelB)4.10 per bushel
C) 5.03perbushelD)5.03perbushelD)6.35 per bushel
,Page 3 of 145
Answer: B
Rationale: The OBBBA increased statutory reference prices by
10–20% for all farm program crops. The new statutory
(minimum) reference prices
are 4.10/buforcorn,4.10/buforcorn,10.00/bu for soybeans, and
$6.35/bu for wheat, effective for the 2025 through 2031 crop
years .
Q4. What is the "effective reference price" under the OBBBA?
A) The statutory minimum price set by Congress
B) The 5-year "Olympic" average market year average price
times 85%, capped at 15% above statutory reference price
C) The current spot market price
D) The futures market price on the sales closing date
Answer: B
Rationale: The effective reference price is based on the 5-year
"Olympic" average (dropping the high and low) market year
, Page 4 of 145
average price from five previous crop years, multiplied by 85%
(.85). The effective reference price can be as much as 15%
above the statutory reference price. For 2025–2026, effective
reference prices
are 4.42/buforcornand4.42/buforcornand10.71/bu for
soybeans .
Q5. Under the OBBBA, the ARC-CO guarantee level has been
increased to what percentage of benchmark revenue?
A) 86% (unchanged)
B) 90% (up from 86%)
C) 95%
D) 100%
Answer: B
Rationale: The ARC-CO guarantee level is increased to 90% of
the calculated benchmark revenue (benchmark county yield ×
