Hanjo Fourie | Business Head | Underwriting | Agri Crop Specialist Solutions | Santam | mail me |
Recent severe weather events across South Africa have once again highlighted the agricultural sector’s growing exposure to climate-related risks. While hail has historically been one of the most visible threats, farmers increasingly face a combination of hazards.
These include strong winds, heavy rainfall, localised flooding and unseasonal weather patterns. Often, these hazards occur within the same production cycle.
This shift is not only increasing the frequency of losses but also their complexity. During the 2025/26 season alone, we recorded insured crop losses exceeding R1 billion. This figure reflects one of the most active claims environments in over a decade. In the previous season, hail-related claims alone reached approximately R170 million. This illustrates the continued severity of individual events within a broader pattern of increasing climate volatility.
A changing agricultural risk landscape
For farmers, these events are not isolated disruptions. Instead, they form part of a changing risk landscape. Historical weather patterns are no longer reliable predictors of future outcomes. The system is becoming more volatile in intensity, 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 of these events extends beyond direct crop losses. Damage to infrastructure can disrupt production cycles and delay harvesting and distribution. This includes irrigation systems, netting, packhouses and access roads.
In high-value horticultural sectors, even minor cosmetic damage from hail or wind can downgrade produce. Consequently, farmers can face lower market values, export revenues and profitability. The rising cost of storms therefore extends beyond the immediate value of damaged crops.
These disruptions ripple throughout the agricultural value chain. Reduced volumes can leave packhouses operating below capacity. This situation affects 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. These concerns are particularly significant for lower-income households.
While regions such as the Highveld and Eastern Free State have traditionally been associated with hail risk, recent weather patterns suggest greater uncertainty. Risk is becoming less predictable and more geographically dispersed. Areas not typically considered high-risk are experiencing more frequent severe weather events. Meanwhile, established hotspots are experiencing changes in intensity and timing.
Weather patterns and farm-level adaptation
At the same time, growing evidence shows that climate variability is affecting the timing of key agricultural seasons. Farmers increasingly experience extreme weather events outside traditional windows. These events can have severe consequences for crops at critical growth stages.
For example, maize remains highly vulnerable during flowering and pollination. A single storm can significantly reduce yields or cause complete crop failure.
In response to these challenges, farmers are adapting their operations in several ways. Many are investing in improved water management systems. They are also investing in protective infrastructure, such as hail nets. Precision agriculture technologies allow more responsive decision-making.
Tools such as satellite monitoring and soil moisture tracking help farmers manage risk at field level. Meanwhile, seasonal forecasts and early warning systems improve preparedness. However, adaptation comes at a cost. Rising input prices and infrastructure investments are placing increasing financial pressure on farming operations. Farmers must also fund ongoing technological upgrades.
When they combine these costs with repeated weather-related losses, cash flow can become significantly constrained. This pressure can limit their ability to reinvest in future production. The rising cost of storms therefore creates both immediate losses and longer-term financial pressures.
In this environment, crop insurance plays a critical role. It provides financial protection after an event. However, it also enables farmers to recover and maintain production continuity. Furthermore, insurance can help farmers access financing. By transferring a portion of the risk to a broader pool, insurance helps stabilise the agricultural system. It also supports long-term sustainability.
Strengthening the role of crop insurance
Despite its value, misconceptions about agricultural insurance remain. Some farmers view it as unaffordable or unreliable. Others underestimate the importance of complying with policy requirements. In reality, incomplete documentation often contributes to delays in claims settlement.
Late reporting can also cause delays. Deviations from agreed production practices may create further complications. Working closely with brokers can significantly improve outcomes. Maintaining accurate records can also strengthen the claims process.
As climate volatility intensifies, the role of risk management in agriculture will continue to evolve. Farmers are no longer optimising for stable and predictable seasons. Instead, they are building systems that can withstand repeated disruption. This requires a combination of operational adaptation, technological investment and financial resilience. The rising cost of storms makes this broader resilience approach increasingly important.
In conclusion
Insurance will increasingly form part of this broader resilience strategy. It should not serve as a standalone solution. Instead, it should act as an enabler of recovery and continued investment.
Our Agri Crop’s national footprint and technical expertise continue to support farmers across the country. This support remains important amid increasingly complex conditions. In an environment where climate risk is now a constant, the ability to recover is just as important as the ability to produce.