Improve Operational Health, Maximize Flexibility to Mitigate Drought Risk

Denise GillinAgribusiness, Insurance, News, Risk Management

By Gina Ekstam for AssuredPartners

According to NOAA, the average global surface temperature was the sixth highest for August 2021 since global records began in 1880. Further, the U.S. Drought Monitor reports that over 46% of the contiguous U.S. experienced moderate to exceptional drought in August. These extreme weather conditions are impacting ag operations across the country.

Decreased water availability leads to production losses, increased pests and diseases, and lower livestock productivity. Matt Carstens, president and CEO of Landus in Ames, Iowa, adds, “drought conditions affect weed and fungi control, changes the products that are stored, and impacts the health of livestock. Operationally, severe weather events can lead to supply chain and infrastructure disruption. For example, a lack of corn being shipped into the cooperative may result in our inability to fulfill contractual obligations. Or low water levels on the rivers can affect our ability to transport product.”

With so much at stake, the industry’s insurance and risk management partners are digging deep to develop new measures to help protect this important economic driver.

Click to learn how your insurance program can make a difference.

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