Catastrophic risk protection (CAT) is available under the area risk protection insurance policy (ARPI) for what type of protection?

Catastrophic risk protection (CAT) under the area risk protection insurance policy (ARPI) specifically provides coverage for area yield protection (AYP). This type of insurance is designed to protect producers from significant yield losses caused by natural disasters or adverse weather conditions affecting the crop across a wide area.

AYP focuses on the average yield for a specific area rather than individual farm yields, providing a safety net for farmers in instances where their crops are impacted, and thus helps stabilize income when the average yield in the area falls below a designated threshold. This approach allows farmers to manage risk without needing to insure their individual yields, making it a cost-effective solution for those who may face severe losses due to uncontrollable factors.

The other types of protection mentioned, such as area crop disaster and area revenue protection, serve different functions or cover different aspects of agricultural risk and are not classified under the CAT provisions of the ARPI in the same way as AYP. Individual yield protection focuses on the specific yield of an individual farm, rather than the broader area yield, distinguishing it from the area-based protections like AYP under CAT.