Catastrophic Risk Protection (CAT)

Catastrophic Risk Protection (CAT) is a government-subsidized insurance program for farmers that provides financial safety in case their crops are severely damaged or destroyed by natural disasters such as droughts, floods, or hail. It offers a basic level of coverage at a lower premium, protecting farmers from the worst losses. If a crop’s losses exceed a certain percentage, the insurance pays a set amount to help farmers recover, enabling them to manage risks associated with unpredictable weather and natural events.