June 30, 2020
A lack of visibility
Geopolitical instability, changing regulation and the impact of climate hazards on yields, cause strong fluctuations in raw material prices. This means farmers have poor visibility over their future revenues, given their dependency on market prices.
A lack of investment
The agriculture sector is partially adopting innovations that could change the game. Two distinct farming worlds are forming: on the one hand, large farms with increasingly sophisticated practices, and on the other, small farms that are having trouble adapting.
Isolation in the face of complex regulation
Farmers require a whole host of complementary skills to succeed : finance, management, law, etc. Major food manufacturers, seed suppliers and cooperatives make advice and talent available to them, but these fragmented services often lack clarity.
Limited insurance coverage
Traditional insurance policies are struggling to cover the risks facing the farming sector :low insurance penetration rate in developing countries ; uncovered losses linked to natural disasters ; insurance contracts excluding certain legal entities (such as cooperatives) and types of crops.
