Low crop yields?
Drought?
Freezing temperatures?
High winds?

We help the agricultural industry by providing parametric products that can protect against adverse weather and climatic risks of almost any kind, including crop yields, precipitation, temperature, and more.

Our team brings decades of combined experience helping clients across the agricultural sector hedge and manage climate risk.

Our end-to-end risk management ecosystem is designed to create solutions that meet the needs of your business and clients and help them build financial climate resilience.

Agriculture Products

Explore these quick start guides
to get you going.

Crop Yield

Who

Any business in any agricultural supply chain that wishes to hedge against the risk of adverse weather and climate events.

What

Weather index products to hedge against financial risk caused by low or high crop yields.

How

Arbol utilizes crop yield data published by trusted, third-party sources to design and implement a customized crop yield index to mitigate each client’s unique risks. Clients can define the proportion each crop and location represents in the crop yield index, and the specific crop yield triggers that result in payment. When published, the trusted, third-party crop yield data is applied to the chosen parameters and a payment amount is determined.

Availability

Globally, subject to availability of trusted, third-party data.

Real World Crop Yield Example

A cotton gin in Lubbock, Texas, was concerned about low cotton yields that would reduce bales ginned and revenue. To hedge against the risk of decreasing revenue, we structured a cotton yield index product to pay if cotton yields were less than the chosen trigger.

Client

Cottin Gin

Location

Lubbock, TX

Peril

Low Cotton Yields

Index

Crop Yield in Lubbock County, TX

Time Period

Crop Year

Limit

$1,000,000.00

Strike

271.1 lbs/acre

Limit Paid At

177.5 lbs/acre

Payment Per Lost Lb

$10,683.76

Precipitation

Who

Any business in any agricultural supply chain that wishes to hedge against the risk of adverse weather and climate events.

What

A precipitation index product to hedge against financial risk caused by adverse precipitation events like drought, flood, low and high soil moisture, and excess and insufficient snow.

How

Arbol utilizes precipitation data published by trusted, third-party sources to design and implement a customized precipitation index to mitigate each client’s unique risks. Clients can define the proportion each location represents in the precipitation index, and the specific precipitation triggers that result in payment. When published, the trusted, third-party precipitation data is applied to the chosen parameters and a payment amount is determined.

Availability

Globally, subject to availability of trusted, third-party data.

Real World Crop Yield Example

A wheat farmer in Garden City, Kansas, was concerned about low precipitation that would reduce wheat yields. To hedge against the risk of decreasing revenue, we structured a precipitation index product to pay if precipitation was less than the chosen trigger.

Client

Farmer

Location

Garden City, KS

Peril

Low Rainfall

Index

Cumulative Precipitation at Location

Daily Precipitation Cap

2.50"

Time Period

3/1 — 4/31

Limit

$100,000.00

Strike

3.39"

Limit Paid At

1.57"

Payment Per Inch

$54,945.05

Temperature

Who

Any business in any agricultural supply chain that wishes to hedge against the risk of adverse weather and climate events.

What

Weather index products to hedge against financial risk caused by adverse weather temperatures.

How

Arbol utilizes temperature data published by trusted, third-party sources to design and implement a customized temperature index to mitigate each client’s unique risks. Clients can define the proportion each location represents in the temperature index, and the specific temperature triggers that result in payment. When published, the trusted, third-party temperature data is applied to the chosen parameters and a payment amount is determined.

Availability

Globally, subject to availability of trusted, third-party data.

Real World Crop Yield Example

A fruit packer in Lakeland, Florida, was concerned about freezing temperatures that would reduce fruit volumes. To hedge against the risk of decreasing revenue, we structured a temperature index product to pay if temperature was less than the chosen trigger.

Client

Fruit Packer

Location

Lakeland, FL

Peril

Freezing Temperature

Index

Minimum Temperature

Daily Precipitation Cap

2.50"

Time Period

12/1 — 2/28

Limit

$500,000.00

Strike

32°F

Limit Paid At

28°F

Payment Per Degree

$125,000.00

Other

Who

Any business in any agricultural supply chain that wishes to hedge against the risk of adverse weather and climate events.

What

Weather index products to hedge against financial risk caused by adverse weather events like hurricane, wind, water levels and temperatures, vegetative health, and more.

How

Arbol utilizes weather data published by trusted, third-party sources to design and implement a customized weather index to mitigate each client’s unique risks. Clients can define the proportion each location represents in the weather index, and the specific weather triggers that result in payment. When published, the trusted, third-party weather data is applied to the chosen parameters and a payment amount is determined.

Availability

Globally, subject to availability of trusted, third-party data.

Real World Crop Yield Example

A grain exporting company in New Orleans, Louisiana, was concerned about a hurricane that would disrupt grain shipments. To hedge against the risk of decreasing revenue, we structured a hurricane index product to pay if maximum sustained wind speeds of the hurricane were greater than the chosen trigger.

Client

Grain Exporter

Location

New Orleans, LA

Peril

Hurricane

Index

Max Wind Speed in Circle

Time Period

6/1 — 11/30

Limit

$10,000,000.00

Strike

Cat 2

Limit Paid At

Cat 5

WHy Arbol?

We offer some of the fastest pricing and quickest payout times in the industry.

Custom Structuring

We can structure and build a program for almost anything. We specialize in building customized climate solutions to fit the needs of your business and clients.

Rapid Pricing

Our proprietary pricing platform will get a quote for your business light years faster than the rest of the industry.


Easy Payouts

When your selected triggers are met, you get a rapid payout without the mountains of paperwork, months-long settlement process, or needless disputes.


Have a
question?

Review these common questions for quick answers, and if you need further assistance, feel free to contact us directly.

FAQ Question 1 goes here?

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FAQ Question 2 goes here?

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Get Started

Get started with a demo of the Arbol platform today.

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