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WAEC Agricultural Science 2008 Question 57

Question 57

Agricultural Finance

Agricultural business is difficult to insure in West Africa mainly because

  1. A.agricultural production is not very profitable
  2. B.agricultural production is highly risky
  3. C.many farmers are very poor
  4. D.the premium is high
Show the answer and explanation

Answer: B (agricultural production is highly risky)

Explanation

Weather, pests and disease make losses frequent and hard to insure.