Catastrophic Risk Protection

Known as the 50/55 plan

• Provides yield loss protection at 50% of the APH - will only pay when the current year’s production is lower than 50% of your approved yield

• Indemnities are paid at 55% of the expected market price 

Let’s face it, this is likely not the greatest plan, at least in my own opinion. The probability of you getting a claim/indemnity payment seems to be greater on the revenue protection plan or yield protection plan. However, this plan is absolutely better than not having crop insurance at all.

It is not terribly expensive, currently at $655 per crop, per county. The premium is currently 100% subsidized, meaning that you, the farmer do not pay the premium. The $655 per crop, per county is the administrative fee. AND, if you qualify as a Beginning Farmer, the administrative fee is also waived, through your 5th year of farming, which would mean that you could possibly get this plan of crop insurance for FREE! At least until you no longer qualify as a Beginning Farmer.

I think this plan (just my opinion) would be great for someone that is a beginning farmer, who doesn’t have much cash flow or is unsure about the crop insurance world, and just wants to see how things go as they’re starting out. This plan is also frequently purchased on High-Risk Ground.

However, if you have only a small amount of acreage, and you don’t qualify as a Beginning Farmer, your total premium could actually be less than the $655 Administrative fee per crop, per county. So you could possibly have a better plan of insurance, for a lower cost.

The CAT plan of insurance Excludes the following:

• Replant coverage

• Written Agreements

• Yield Floors

• Yield Cups

• No hail and fire exclusion available

Some of the Options or Endorsements that CAN be Added are:

• Prevent Plant coverage

• Yield Adjustment

• Yield Exclusion

To give you an idea of how this plan of insurance could possibly pay (which is not a guarantee and is not an offer of coverage), you could use the following calculation:

Step 1: Approved Yield x 50% = Bushels per acre you are guaranteed

Step 2: Expected Market Price x 55% = Price you are guaranteed

Step 3: Bushels per acre you are guaranteed - Actual bushels harvested. x Price you are guaranteed = Total Indemnity/Claim paid to you

Please note that there are options and other factors that you may have on your individual policy that could affect this calculation, so please call your crop insurance agent to be sure.

I would love to get you a quote if you are interested in this plan, so please reach out with any questions you may have.

Updated 5/14/2025 - by Sharon Dyer

This information is not all inclusive and is meant to be used for general guidelines for educational purposes only. You the reader assume full responsibility for how you choose to use it. For additional information, please see crop provisions, reference the crop insurance handbook or loss adjustment manual, or contact your crop insurance agent. This institution is an equal opportunity provider and employer.