What type of unit can CAT coverage obtain?

CAT (Catastrophic Risk Protection) coverage is designed to provide minimal insurance protection for crops. It is primarily intended for farmers who may not be able to afford more comprehensive coverage. In the context of CAT coverage, the type of unit it can obtain is a basic unit.

A basic unit is defined as all the insurable acreage of a crop in a county, which is owned or operated by the same person or entity. This structure fits well with CAT coverage because it simplifies the insurance process and offers a basic level of protection without the complexity of unit divisions. The goal of CAT coverage is to provide a safety net for farmers, ensuring they have some protection against catastrophic events affecting their crops.

Other unit types, such as supplemental, enterprise, and optional units, involve more complex arrangements that allow farmers to insure specific portions of their crops separately or to customize their coverage. These units provide greater detail and can offer more protection, but they do not align with the straightforward and minimalistic approach of CAT coverage. Therefore, the correct association of CAT coverage with a basic unit reflects its foundational nature in providing risk protection for agricultural producers.