IBPS SO Agricultural Field Officer, CRP SPL-XVI (2026) - new pattern · India · Institute of Banking Personnel Selection
Original practice questions written to the published syllabus · not past papersThe risks farmers and agribusinesses face and the tools to manage them: insurance, hedging and sound credit policy.
In the exams: agricultural master's entrance examinations, crop insurance (heavy); agricultural economics PhD entrance and fellowship examinations, risk and insurance (heavy); agricultural field officer recruitment in banking (heavy); agricultural development bank officer recruitment (present)
How our questions for IBPS SO Agricultural Field Officer, CRP SPL-XVI spread across the units of Agri Risk Management & Insurance. Difficulty: 18 easy, 20 medium, 8 hard.
| Publicly supported area-yield and weather-index crop insurance | 16 | |
| Credit risk in bank lending | 9 | |
| Livestock insurance | 8 | |
| History of crop insurance | 4 | |
| Yield-index insurance | 4 | |
| Weather-index insurance | 3 | |
| Types of risk: production, price, institutional, financial and personal | 1 | |
| Risk diffusion strategies | 1 |
Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.
The Federal Crop Insurance Corporation of the United States was created by the Federal Crop Insurance Act of:
B. 1938
The 1938 Act created the FCIC, first insuring wheat. The 1980 Act expanded the programme and brought in private insurers; the 1994 Reform Act introduced catastrophic coverage; 2014 is a farm bill, not the founding act.
What is the main advantage of making crop insurance compulsory for farmers who take seasonal crop loans?
B. It secures broad enrolment and lets a claim repay the loan after a loss
Credit-linked compulsory cover, used in several countries, gives insurers a large pool and protects lenders and borrowers together. It does not remove the need for subsidy, basis risk or moral hazard elsewhere.
A unit's yields over the past seven years were 22, 30, 18, 27, 25, 31, 20 q/ha. With an indemnity level of 70%, what is the threshold yield under the 'best five of seven' rule?
C. 18.9 q/ha
Best five yields: 31, 30, 27, 25, 22; average = 27 q/ha. Threshold = 27 x 0.70 = 18.9 q/ha. Using all seven years gives 17.3; forgetting the indemnity level gives 27; using the last five years gives 16.94.
For a main-season food crop, the actuarial premium rate discovered by bidding is 12% and the sum insured is 60,000 currency units per hectare. The farmer pays 2% and the subsidy is shared equally between the national and regional governments. What is the national government's share of the subsidy per hectare?
A. 3,000 currency units
Total premium = 0.12 x 60000 = 7,200 currency units. Farmer pays 2% = 1,200 currency units. Subsidy = 6,000 currency units, shared equally, so the national government pays 3,000. Splitting the full premium without first deducting the farmer's share gives 3,600 currency units; 5,400 currency units assumes a 90:10 split.
Why do governments in most countries subsidise crop insurance premiums heavily?
B. Because correlated risk and high delivery costs make unsubsidised premiums too high for most farmers
Drought and floods hit many farms at once, so insurers need large reserves and reinsurance, and serving small farms is costly; unsubsidised premiums deter most smallholders. WTO rules place limits on some subsidies; they do not require insurance.
Most insured farmers in an area could not sow because of severe rainfall deficit. A scheme pays prevented-sowing indemnity of up to 25% of the sum insured and then ends cover for that crop. What is the maximum indemnity for a farmer with a sum insured of 45,000 currency units?
B. 11,250 currency units
Prevented sowing indemnity is capped at 25% of sum insured: 0.25 x 45000 = 11,250 currency units, after which cover for that crop ends. Full sum insured is not paid because the farmer has not incurred the full season's costs. 22,500 currency units uses 50% instead of 25%; 900 currency units applies a 2% premium rate instead of the 25% cap.
A hailstorm destroys the standing crop on a few isolated farms in a village where the area yield is otherwise normal. Under an area-yield scheme with a localised-calamity add-on, these farmers:
A. Are assessed individually under the localised calamity provision if they report in time
Hailstorm, landslide, inundation, cloudburst and natural fire from lightning are localised calamities assessed farm by farm, precisely to reduce the basis risk of the area approach. The farmer must report promptly (within 72 hours under India's PMFBY guidelines).
RWBCIS determines claims mainly on the basis of:
A. Weather parameters at reference weather stations compared with term-sheet triggers
RWBCIS is a parametric scheme: rainfall, temperature, humidity, wind and similar parameters at reference weather stations are compared with the notified term sheet. No CCEs are required, which speeds settlement.
Which statement correctly contrasts area-yield index insurance and weather-index insurance?
D. Area-yield schemes measure yields by crop cuts and add individual checks; weather-index schemes pay on station data
Area-yield schemes measure actual area yields and add farm-level assessment for localised and post-harvest losses; weather-index schemes are parametric. In India, for example, PMFBY and RWBCIS have the same farmer premium shares and both are open to borrowers and non-borrowers.
For a death claim on an insured buffalo, which set of documents is typically required?
A. Claim form, ear tag, vet's death certificate, post-mortem report if required, and photographs
Livestock claims turn on proving the identity and cause of death of the insured animal. Crop and weather documents belong to crop insurance.
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