By Jamie Martin
The U.S. experienced its fourth costliest weather year recently, causing over $20 billion in agricultural losses. This has prompted a major push to modernize farm insurance, making it smarter, faster, and more climate-ready.
Traditional crop insurance is vital but often slow and based on outdated climate models. Now, innovations like parametric insurance are helping.
Instead of waiting for loss assessments, this model pays immediately when specific weather events occur, such as extreme heat or drought.
Companies like Praedictus Climate Solutions and Descartes are building tools powered by AI and real-time weather data. These insurance options let farmers recover quicker and make informed crop and water choices.
Nature X, for example, offers policies that reduce financial risk when farmers use fertilizers efficiently, also improving water quality in nearby regions.
Partnerships are crucial to progress. EDF and Kansas partners use OpenET data to assist irrigated farms. In Illinois, the Corn Growers Association and University of Illinois are working to link cover cropping with lower insurance rates through the USDA.
Private coalitions like MBOLD promote insurance for winter camelina—a crop that protects soil and supplies renewable fuel markets. Growers Edge partners with food companies to support conservation with risk-sharing plans.
“Crop insurance can become a tool not just for recovery, but for transformation—helping farms adapt to climate change while protecting food systems and natural resources,” experts note.
This shift toward tech-driven insurance helps U.S. farmers thrive in an unpredictable climate, while protecting resources and rural livelihoods.
Photo Credit: gettyimages-nes
Categories: National