Which of the following statements about Multi-Peril Crop Insurance (MPCI) is false?

The statement indicating that Multi-Peril Crop Insurance (MPCI) coverage applies per acre is not accurate, as MPCI is designed to cover losses on a "unit" basis, which can encompass multiple acres. A unit typically refers to a specific type of crop in a designated area, allowing for a more standardized approach to assessing loss and payout. This means that all operational areas of a specific crop type within the defined unit are considered collectively when determining the insurance coverage and any losses incurred.

The other statements accurately describe aspects of MPCI. For instance, the insurance is indeed subsidized by the Federal Crop Insurance Corporation (FCIC), which helps lower premium costs for farmers. Additionally, MPCI primarily addresses losses resulting from weather-related events, such as floods, droughts, and other natural phenomena, providing crucial protection for agricultural producers. Understanding the concept of "units" is important in grasping how MPCI functions, as it directly impacts how coverage is calculated and claims are processed.