Crop yield insurance is critical for protecting the agricultural sector from the financial risks associated with significant drops in crop production. In years when crop yields fall well below average due to factors like weather conditions, pests, or other natural disasters, the financial impact can be devastating. Descartes’ parametric crop yield insurance offers a solution to mitigate these risks by providing coverage when production drops a predetermined amount below the Olympic yield average for a given crop.
What sets Descartes' parametric solution apart is its reliance on official agriculture statistics as a replacement for on-site loss adjustment. This data allows for precise and transparent assessments, ensuring that compensation is directly tied to actual yield performance rather than complicated claims processes. By using bespoke triggers to indicate a significant decline in crop yields, it allows us to provide swift payouts that provide much-needed liquidity to farmers and agribusinesses when they need it most.
Descartes’ solution safeguards the entire agricultural value chain. Agribusinesses, food processors, commodity traders, and even energy companies reliant on crops like corn for biofuel production benefit from this coverage. When crop production falls, industries that depend on agricultural outputs face added costs from supply disruptions and may need to seek alternative sources. By insuring against yield shortfalls, these sectors can maintain operational stability even in challenging years.
To learn more about how Descartes' parametric crop yield insurance can protect your business from the risk of low crop production, download our comprehensive product sheet. The guide covers everything from the industries it supports to the detailed payout calculation process, ensuring you have all the information needed to safeguard your operations.
