Which payment option applies to the CAT Plan?

The correct payment option for the CAT (Catastrophic Risk Protection) Plan is based on a 10% premium or $655 per crop per county. This structure is specifically designed to provide a basic level of coverage for farmers, allowing them to protect a portion of their crop yield from losses due to events like drought, flood, or pests.

The rationale behind the 10% premium is that it offers a low-cost insurance option, making it more accessible for farmers who may not be able to afford more comprehensive coverage. The $655 per crop per county component ensures that individual farmers are not overburdened with high premiums while still receiving essential financial protection. This option emphasizes the federal government's intent to maintain stability in the agricultural sector and support farmers at a minimal cost.

Other options reflect premium structures that do not align with the set guidelines for the CAT Plan, which is focused on affordability and basic coverage. This makes the option regarding a 10% premium or $655 per crop per county uniquely suited to the purpose and implementation of the CAT Plan in crop insurance.