WeatherBill report shows heavy rains across Eastern Corn Belt could cost growers $11.2B

by Artemis on May 12, 2011

WeatherBill, a high profile technology focused provider of weather risk solutions and weather insurance for industries such as farming, has published a report looking at the impact of recent heavy rains across the U.S. Eastern Corn Belt and how that weather is likely to affect growers financially due to planting delays.

The report shows that between 834 million and 1.6 billion bushels of corn are at risk across top corn producing states as a result of planting delays due to the extreme weather. They estimate that it could equate to a financial loss of between $5.8 billion and $11.2 billion depending on how quickly growers can get their crops planted as the fields recover and precipitation dries up.

That could be a devastating loss for many growers, particularly those without sufficient weather risk protection or weather insurance. There could also be a knock-on effect to reinsurers who underwrite agricultural insurer schemes. Alternative methods of weather risk management would provide at least some financial assurance to farmers under weather conditions like these with weather derivatives, weather-index insurance and traditional weather insurance cover all possible solutions. Reports like this serve to show the importance of weather hedging as part of an overall risk management strategy.

You can read the press release from WeatherBill here and download the full report.

Subscribe for free and receive weekly Artemis email updates

Sign up for our regular free email newsletter and ensure you never miss any of the news from Artemis.

Joe Jax May 16, 2011 at 9:54 pm

Quasi interesting. Turning a report about bushels of corn at risk into a press release rings of the scare-hype like marketing tactics used by the now defunct Storm Exchange (they too had a lot of funding as a startup in the form of private capital). Farmers in the field know the risks better than anyone, they don’t need to be reminded by press releases.

WeatherBill is now under increased pressure to perform by agreed to accept more funding with a Series B of Venture Capital (VC) funding (Series B VC added to the previous Series A). This adds to additional difficulty WeatherBill may have in attracting top talent in this highly specialized area, given the nature of how investments in start up funding works (initially funded by angel investors, then more dilution of stock by Series A VC, and even more dilution of stock by Series B). Why would top talent want to risk leaving their stable jobs, say at a renowned university, to work for a more risky start up with diluted stock?

← Older Article

Newer Article →