Farmers Edge and Global Ag Risk Solutions are teaming up to combine Farmers Edge field-centric data with Global Ag’s customized insurance products to create a new data-driven insurance model for crop farmers.
Mutual customers of Farmers Edge and Global Ag in both Canada and the US will have access to exclusive options and services, including customized insurance products and Farmers Edge precision digital tools. These tools automatically collect, integrate, and process data from multiple field-centric sources into one platform, FarmCommand, giving farmers insights to make advanced management decisions and measure results.
Each season, farmers face uncontrollable elements and large overhead costs like land, machinery and labor. Farmers assume the risk that their revenue might not cover expenses. The new partners hope that the FarmCommand solution will provide farmers with a unique way to protect their assets based on a predictable annual revenue stream that includes input costs, plus an additional margin. If input costs go up, so does the coverage, hopefully providing growers the freedom and confidence to farm the way they want, without being stifled by risk.
“With this particular private insurance product, Farmers Edge and Global Ag can take a comprehensive view of every aspect of the farm, including its operations and efficiencies,” Ron Osborne, CSO of Farmers Edge, wrote to AgFunderNews via email. “Field-centric data is collected through our CanPlug devices, on-farm weather stations, and satellite imagery, enabling the analysis of crop health data, historical data, field records, financial break-evens and profits. This is an ideal time for Global Ag growers with existing policies to upgrade to a premium product, and for Farmers Edge customers to access Global Ag Production Cost Insurance.”
Farmers Edge is not sharing any data as part of the partnership. The company took a firm stance since its inception that the farmer retains ownership of the data and have the ultimate decision regarding whether that data is shared and who receives it.
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“Like their relationship with any insurance company, the farmer owns their data and chooses who to share it with. Growers who use our precision digital solutions can leverage existing farm data to get better, faster, and more cost-effective products customized for their needs from Global Ag,” writes Osborne. “Farmers who utilize Farmers Edge precision digital tools, will be able to provide Global Ag with that dataset to access products that are customized to their needs.”
The more data that a grower shares with the insurer, however, the better their risk management outcome will be. Weather, profits, crop health, and on-farm efficiencies are all key ingredients to achieving the right level of protection for each unique farmer. This is especially important considering that no two farms are exactly alike.
Both Canadian-based companies will cross-market each other’s solutions and work together to develop new, dynamic customized insurance products.
In February 2018, Farmers Edge announced a four-year deal with major global reinsurer PartnerRe to also provide customized insurance products to its members. Under the terms of the agreement, PartnerRe and Farmers Edge are working to jointly develop new agriculture insurance products aimed at addressing the targeted insurance products for farmers.
This isn’t the first time an ag data company is making a foray into the insurance space. Direct competitor Farmobile announced partnerships with Guy Carpenter and AmTrust Agriculture Insurance in 2017.