Weather index products to hedge against financial risk caused by low or high crop yields.
Who
Any business in any agricultural supply chain that wishes to hedge against the risk of adverse weather and climate events.
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.
Available
Globally, subject to availability of trusted, third-party data.
A real-world 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.
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.
Who
Any business in any agricultural supply chain that wishes to hedge against the risk of adverse weather and climate events.
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.
Available
Globally, subject to availability of trusted, third-party data.
A real-world 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.
Weather index products to hedge against financial risk caused by adverse weather temperatures.
Who
Any business in any agricultural supply chain that wishes to hedge against the risk of adverse weather and climate events.
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.
Available
Globally, subject to availability of trusted, third-party data.
A real-world 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.
Weather index products to hedge against financial risk caused by adverse weather events like hurricane, wind, water levels & temperatures, vegetative health, and more.
Who
Any business in any agricultural supply chain that wishes to hedge against the risk of adverse weather and climate events.
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.
Available
Globally, subject to availability of trusted, third-party data.
A real-world 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.
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.
Industry Leading Pricing Tools
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.
Learn how we helped a cotton gin in Texas protect its revenues against adverse weather
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.
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