Agriculture: Can insurance protect your crops from climate change?

Climate change is changing the world we live in today. With changes constantly being reported to our ecosystem, it is vital that we take steps to protect the resources we have. If we don’t, we will soon start to see shortages of key supplies – the main one being food. Farmers who grow crops have already been immensely affected by climate change. Therefore, having protection against any natural disasters or anything that puts your crops at risk is essential.

How has climate change impacted crops around the world?

As we are living in a warmer world, some countries may benefit from rising temperatures, however, others won’t – China and India will experience loss with the amount of arable land as a result of the soaring temperatures. As land becomes increasingly dry in Northern Europe, potato farmers will have longer growing seasons. However, even though there has been a 20% drop in production in North America, it still remains a global supplier as one of the leading corn growers in the world.

Further issues aside from increasing temperatures, such as flash floods and excessive rainfall also impact crop production and yields. Increased rainfall can result in challenges such as crop disease and pests, alongside blocked drains and hedge damage – all of which reduce the overall profitability of a farm.

How has climate change impacted crops in the UK?

Farmers have and are still facing the damages caused by the heat waves over the summer months, which caused severe droughts. There has also been an increase in heavy rainfall over the winter months, with land being flooded. As the weather becomes more severe throughout the year, farmers are losing a huge amount of crops and profit.

In fact, a report made in 2021 found that farmers’ incomes had dropped by 20%, due to factors relating to climate change, which resulted in many farms shutting down as the losses became too much to manage.

How can insurance protect your crops from climate change?

Fortunately, crop insurance is there to provide you with some peace of mind that your farm is protected. By having insurance in place, it allows you to avoid potential loss of revenue as a result of climate change (such as droughts or floods). However, due to the numerous areas involved in the crop growing process, there isn’t just one type of crop insurance in the UK.

Examples of agricultural insurance you can take out in the UK include:

• Crop hail insurance. This policy can cover the cost of any damages to your high yielding crops, caused by hail or fire.
• Livestock insurance. This policy can provide protection from injury, illness, disease or death, whether it impacts specific animals or whole herds.
• Environmental liability. This policy can support with any costs relating to pollution of your farm, and the required clean up.
• Farm motor insurance. This policy can cover all of your farm vehicles, including tractors, balers and combine harvesters.
• Farm combined insurance. This policy can be tailored to meet the unique needs of your farm, allowing you to pick and choose the coverage you require.