What is the purpose of Catastrophic Risk Protection (CAT)?

The purpose of Catastrophic Risk Protection (CAT) is to ensure minimum coverage for specific USDA program eligibility. CAT is designed to provide a basic level of insurance for farmers, allowing them to have some financial protection against significant losses due to natural disasters or market fluctuations. This basic protection is also a prerequisite for accessing other USDA programs, ensuring that farmers meet minimum risk management standards.

Choosing CAT ensures that producers can participate in various assistance programs provided by the USDA. This program is intended to be a safety net for farmers, providing them with a lower-cost option to address risks associated with crop production. By offering minimal coverage, CAT serves as a foundation for farmers to qualify for further support, thereby helping to stabilize agricultural output and income in times of hardship.