In the unpredictable world of farming, weather is one of the most significant factors affecting harvest quality and profit margins. For Australian farmers, excessive rainfall during critical harvest windows can lead to crop downgrades, slashing profits and leaving them vulnerable to market fluctuations. However, by using CelsiusPro’s Wet Harvest Weather Certificates, one farmer has successfully safeguarded his income for three consecutive years—receiving a total of over $1.2 million in payouts to compensate for harvest losses.
In this case study, we’ll explore how this savvy farmer from Condobolin, NSW, leveraged parametric insurance to protect his crops from downgrades and maintained financial stability despite adverse weather conditions. His story demonstrates the perfect use of CelsiusPro’s Wet Harvest Weather Certificates, showing other farmers why this type of coverage is essential.
The Farmer's Success with Wet Harvest Weather Certificates
Over the last three years, this farmer has effectively mitigated the risks posed by wet harvest conditions. The details of his payouts are as follows:
2021: A payout of $373,400 was triggered after significant rainfall during his wheat harvest window.
2022: He secured a $475,000 payout due to multiple rain events exceeding thresholds during the critical harvest period.
2024: Most recently, the farmer received a $354,334 payout for losses caused by excessive rainfall during his cotton harvest in May.
These payouts not only covered the losses from crop downgrades but also helped the farmer maintain his profit margins despite market volatility and weather risks.
How the Wet Harvest Weather Certificates Work
CelsiusPro’s Wet Harvest Weather Certificates are based on parametric insurance, meaning payouts are triggered automatically when a specific weather event—like heavy rainfall—occurs.
The example below of our farmer's 2022 Wet Harvest Certificate will give you an idea of how we structure, price, and payout.
In 2022, the farmer’s wheat crop in Condobolin, NSW, faced significant rainfall during the harvest window from October 27 to November 20. The certificate was designed to trigger on the 2nd, 3rd, 4th, and 5th non-consecutive days of rainfall greater than 16 mm and provide additional coverage if cumulative rainfall exceeded 50mm over the entire period.
Breaking Down the $475'000 Payout
Structure 1 - Rain Day: This structure paid $87,500 on the 2nd and 3rd non-consecutive days of rain exceeding 16mm during the harvest window, resulting in a $175'000 payout for this structure.
Structure 2 - Cumulative Rain Season: This structure covered cumulative rainfall over the entire harvest period and paid $8,000 per mm greater than 50 mms, up to a maximum payout of $300,000. Total rainfall accumulated to 122.8 mms, meaning the maximum payout was reached when the accumulation exceeded 87.5 mms (87.5 mms - 50 mms = 37.5, $8000 x 37.5 = $300'000).
The total compensation for his certificate amounted to $475'000.
These two structures provided a safety net for the farmer, ensuring that whether rain occurred as isolated events or as cumulative totals over the season, he was covered.
Why the Farmer Continues to Invest in Wet Harvest Weather Certificates
This farmer’s success with CelsiusPro’s certificates didn’t stop in 2022. Understanding the unpredictable nature of Australian weather and the financial risks associated with crop downgrades, he secured further coverage for his 2024 cotton harvest. With cotton being particularly sensitive to wet conditions, his payout of $354,334 in May 2024 was another example of how parametric insurance can protect against weather-related losses.
By using CelsiusPro’s Wet Harvest Weather Certificates year after year, this farmer has not only minimized his exposure to risk but also gained the confidence to focus on growing and optimizing his farm rather than constantly worrying about the weather forecast.
Why Australian Farmers Need Wet Harvest Weather Certificates in 2024
1. Protection from Market Volatility
With wheat prices and other crop values fluctuating in 2024, farmers can’t afford additional losses from downgrades caused by wet weather. This farmer, for example, faced a significant price difference between milling-grade wheat at $360 per ton and feed-grade wheat at $252 per ton. A crop downgrade without protection could have resulted in a loss of $648,000. However, with his Wet Harvest Weather Certificate, the $475,000 payout in 2022 significantly cushioned this blow.
2. Automatic Payouts Without the Hassle
CelsiusPro’s parametric insurance operates on automatic triggers based on weather data. This eliminates the need for lengthy claims processes. In the case of the Condobolin farmer, payouts were made quickly after rainfall exceeded the agreed-upon thresholds, providing much-needed liquidity when he faced income loss from downgrades.
3. Customizable Coverage for Your Unique Risks
Each farm faces different risks depending on location, crop type, and harvest window. CelsiusPro’s Wet Harvest Weather Certificates are highly customizable, allowing farmers to select specific rainfall thresholds and payout structures that match their risk exposure. This flexibility is what made this farmer’s 2021, 2022, and 2024 payouts possible.
4. A Proven Track Record of Success
This farmer’s success story demonstrates that investing in parametric insurance is not just a smart financial move, but a necessary risk management strategy for Australian farmers. Over three years, he has received over $1.2 million in payouts, proving the value of CelsiusPro’s products in protecting his livelihood.
How You Can Protect Your Farm Like This Farmer
Are you worried about the risk of crop downgrades due to unpredictable weather? CelsiusPro’s Wet Harvest Weather Certificates could be the solution you need to protect your income. Whether you’re growing wheat, cotton, barley, or other crops, parametric insurance offers automatic payouts based on weather data, giving you peace of mind during the critical harvest period.
Just like the farmer in this case study, you can secure your financial future with automatic, hassle-free payouts when extreme weather hits. Don’t leave your harvest to chance—get a Wet Harvest Weather Certificate and safeguard your farm’s income.
Conclusion: Follow in the Footsteps of a Smart Farmer
By consistently using CelsiusPro’s Wet Harvest Weather Certificates, this NSW farmer has shown how parametric insurance can save farms from the financial devastation caused by wet weather. With over $1.2 million in payouts across three years, he serves as a shining example of how to effectively mitigate the risk of crop downgrades.
In 2024, with wheat prices low and weather patterns increasingly unpredictable, it’s more important than ever for farmers to protect their income. Be like this farmer—invest in a Wet Harvest Weather Certificate today and ensure that rain won’t ruin your harvest.
Get a Free, No-Obligation Quote Today
Protect your farm from unpredictable weather risks. Click one of the options below to get started and secure your income with CelsiusPro’s parametric insurance.