What is the administrative fee for CAT protection for each crop in each county?

Prepare for the Iowa Crop Insurance Test. Study with practice quizzes and detailed explanations for each question. Maximize your readiness and excel on your exam!

The administrative fee for the Catastrophic (CAT) coverage is set at $300 for each crop in each county. This fee is essential for the management and provision of the basic level of crop insurance protection that CAT insurance offers, which is designed to assist farmers in times of need by covering their losses due to certain unavoidable events like drought or excessive moisture. CAT coverage is a more affordable option, but the administrative fees contribute to the operating costs of the insurance program, ensuring that it remains sustainable and functional for the farmers who rely on it.

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