Severe weather events across South Africa continue to expose the agricultural sector to escalating climate-related risks. While hail remains a major concern, farmers are increasingly having to contend with multiple weather hazards – from strong winds and heavy rainfall to localised flooding and unseasonal conditions – often during the same production cycle.

This shift is not only increasing the frequency of losses but also their complexity. During the 2025/26 season alone, Santam recorded insured crop losses exceeding R1bn, reflecting one of the most active claims environments in more than a decade.

In the previous season, hail-related claims alone reached approximately R170m, highlighting the continued severity of individual weather events within a broader trend of increasing climate volatility.

For farmers, these events are not isolated disruptions. They form part of a changing risk landscape where historical weather patterns are no longer reliable predictors of future outcomes.

The system is becoming more volatile, not only in intensity but also in timing and overlap. As a result, climate risk is no longer a seasonal consideration; it is now embedded in day-to-day operational and financial decision-making.

The impact extends beyond crop losses

The effects of severe weather stretch far beyond damaged crops. Infrastructure such as irrigation systems, netting, packhouses and access roads can also be affected, disrupting production cycles and delaying harvesting and distribution. In high-value horticultural sectors, even minor cosmetic damage caused by hail or wind can downgrade produce, reducing market value, export earnings and overall profitability.

These disruptions ripple throughout the agricultural value chain. Reduced volumes can leave packhouses operating below capacity, affecting employment and efficiency.

At the same time, damaged infrastructure and logistical bottlenecks place additional strain on already pressured supply chains. Over time, this contributes to increased price volatility and broader food security concerns, particularly for lower-income households.

Weather patterns are becoming less predictable

While regions such as the Highveld and Eastern Free State have traditionally been associated with hail risk, recent weather patterns suggest that severe weather is becoming less predictable and more geographically widespread. Areas not typically regarded as high-risk are experiencing more frequent extreme weather events, while established hotspots are seeing changes in both intensity and timing.

There is also growing evidence that climate variability is shifting the timing of key agricultural seasons. Farmers are increasingly facing extreme weather outside traditional seasonal windows, with potentially severe consequences for crops at critical growth stages. Maize, for example, remains particularly vulnerable during flowering and pollination, when a single storm can significantly reduce yields or result in complete crop failure.

Farmers are adapting to a changing climate

In response to these challenges, farmers are adapting their operations in several ways. Many are investing in improved water management systems, protective infrastructure such as hail nets, and precision agriculture technologies that allow for more responsive decision-making. Tools such as satellite monitoring and soil moisture tracking are enabling farmers to manage risk more effectively at field level, while seasonal forecasts and early warning systems are improving preparedness.

However, adaptation comes at a cost. Rising input prices, infrastructure investments and the need for ongoing technological upgrades are placing increasing financial pressure on farming operations. When combined with repeated weather-related losses, this can significantly constrain cash flow and limit the ability to reinvest in future production.

Insurance underpins agricultural resilience

In this environment, crop insurance plays a critical role. Beyond providing financial protection after an event, it enables farmers to recover, maintain production continuity and access financing. By transferring a portion of the risk to a broader pool, insurance helps stabilise the agricultural system and supports long-term sustainability.

Despite its value, misconceptions around agricultural insurance persist. Some view it as unaffordable or unreliable, while others underestimate the importance of complying with policy requirements. In reality, many delays in claims settlement result from incomplete documentation, late reporting or deviations from agreed production practices. Working closely with brokers and maintaining accurate records, for example, can significantly improve outcomes.

Building resilience for the future

As climate volatility intensifies, the role of risk management in agriculture will continue to evolve. Farmers are no longer optimising for stable, predictable seasons but are instead building systems capable of withstanding repeated disruption. This requires a combination of operational adaptation, technological investment and financial resilience.

Insurance will increasingly form part of this broader resilience strategy – not as a standalone solution, but as an enabler of recovery and continued investment. In an environment where climate risk is now a constant, the ability to recover is just as important as the ability to produce.

Source - https://www.bizcommunity.com