Which of the following is a challenge that crop insurance aims to address?

Crop insurance is primarily designed to protect farmers from losses due to unpredictable and uncontrollable factors that can significantly impact their production capacity and financial stability. Weather-related losses are a prominent challenge in agriculture, often caused by conditions such as droughts, floods, hurricanes, or hailstorms, which can destroy crops and lead to substantial financial setbacks. By providing coverage for these types of losses, crop insurance helps farmers manage the risk associated with weather variability, ensuring they have a safety net that allows them to recover and continue their farming operations despite adverse conditions.

In contrast, while market price fluctuations can also affect farmers, they are typically addressed through different financial instruments or risk management strategies, such as futures contracts. Legal liability pertains to different aspects of agricultural production and is not the primary focus of crop insurance. Lastly, health insurance for farmers involves personal health coverage, which is distinct from crop insurance that specifically addresses agricultural production risks. Hence, the focus of crop insurance on weather-related losses makes it a critical consideration for farmers looking to mitigate risks associated with their livelihoods.