Description financing model: Direct Farmer Financing (Corporate Supply Chain)
Provides preferential financing to farmers within corporate supply chains, with corporates subsidizing part of the cost to support adoption of improved practices.
Applicability: Best suited to well-structured supply chains with formal offtake agreements
Considerations: Scalability depends on the willingness of food & agri corporates to absorb part of the cost
Description of de-risking tool(s):
Third party insurance premium coverage: Third party support to cover the cost of insurance (e.g., for climate or yield risks), enabling access to risk protection tools that would otherwise be unaffordable
Case Study Description:
Farmers receive additional protection against yield losses when transitioning to sustainable practices (e.g., Crop Plan Warranty-type guarantees). Risk is shared across insurers/reinsurers and corporate off-takers, who help cover protection costs. By reducing transition risk, the model increases farmer adoption and improves the risk profile for lenders.
- Value chain players (e.g., Manufacturers, Ag Retailers, CPGs, Non-profits, Grain Traders) define a crop plan for growers to implement; then define with Growers Edge the associated yield benchmark and the warranty payout amount. Growers Edge analyses data to price the per acre warranty fee
- Value chain players pays the flat, agreed-upon fee to Growers Edge
- Growers Edge administers and underwrites the program: value chain player (or third-party platform) white labels the warranty to growers
- Growers Edge partners with MunichRE for reinsurance
- Value chain player provides technical support alongside the warranty to farmers to ensure successful implementation of the program’s requirements
- In case of yield decline (compared to historical production), warranty is triggered, Growers Edge confirms yields with crop insurance documentation, and growers are paid by Growers Edge
2m acres under warranty committed for 2026