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Agriculture

Agriculture is vulnerable to all sources of weather risk. Temperature and rainfall in particular are two important factors that can make or break a farmers earnings.

Some examples include:

Corn: Drought conditions or low sunlight can compromise stalk quality. 'Stalk rots' are caused by high temperatures and moisture pressure on the stalks.

Wheat: Crop disease can develop with unfavourable weather conditions. Floods or excessive rainfall are major factors in causing crops to fail. Waterlogged soils make it impossible to plant seeds and can discourage growth. Drought conditions can stunt the growth of crops. 

Fruit:  Fruit blossoms are especially vunerable to frost days in spring.

Example: Rain protection wheat harvest
Example: Drought protection potato growing period
Example: Frost protection apple blossoms
White Paper: Hedging wheat yields in Australia


Industry quotes

The heat wave in summer 2003 was accompanied by annual precipitation deficits up to 300 mm. This drought contributed to the estimated 30% reduction in gross primary production of terrestrial ecosystems over Europe. This reduced agricultural production and increased production costs, generating estimated damages of more than €13 billion.
(IPCC, Europe Report 2007)

Farmers' livelihoods have been devastated across the UK by the June and July deluges. And now the impact looks set to hit the rest of us in the form of food shortages and raised prices. Peter Davis, managing director of fruit and vegetable distributor Davis Worldwide, says the public will feel the pinch and see gaps on their supermarket shelves until at least next April. "I don't want to exaggerate the problem we've got, but if I say it's a crisis, I'll be telling it exactly like it is," he told BBC Radio 4. "We're only cropping 15 to 20% of what we should be.”
(BBC News 24, July 2007)


CelsiusPro Certificates for Agriculture

Rain Day: Rain Day certificate pays out a pre-defined amount for every day the daily rainfall is above your specified level.

Dry Day:
 Dry Day certificate pays out a pre-defined amount for every day the daily rainfall is below your specified level.

Frost Day:
 Frost Day certificate pays out a pre-defined amount for every day the daily minimum temperature is below your specified level.

Heat Day:
 Heat Day certificate pays out a pre-defined amount for every day the daily maximum temperature is above your specified level.

Dry Season:
Dry season certificate pays a pre-defined amount for every millimeter if the cumulative rainfall during a particular period is below a specified level.

Rain Season:
Rain season certificate pays a pre-defined amount for every millimeter if the cumulative rainfall during a particular period is above a specified level.

Dry Spell:
 Dry spell certificate pays a pre-defined amount for every dry day occurring within a dry spell. A dry day is defined as a day for which the daily rainfall was below a specified threshold. A dry spell is defined as a minimum number of consecutive dry days.              

 

We are here to assist, please contact us.



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CelsiusPro  |   Phone:  +41 44 445 3434  |   E-Mail:  info@celsiuspro.com