AmericanAgTM Emerging Issues for the Farm
Welcome to the AmericanAgTM Farm Connection Emerging Issues page! This section provides details about agricultural emerging issues.
Internet of Things (IoT)
Farmers today face an increasing worldwide demand for food; a changing climate; and a limited supply of water, fossil fuels and arable land. To surmount these hurdles, the agriculture industry is adopting an array of digital solutions including:
- GPS Technology
- Computer Imaging
Sensors in these IoT devices monitor and respond to weather conditions, soil moisture and acidity, movement and behavior of livestock, agricultural facilities, and more.
These devices collect and transmit data that can be used for underwriting and risk management. However, reliance on these devices to monitor and perform operations and the collection and transmission of data can also create new risks.
Rise of Internet of Things used in agricultural production may change risks and insurer expectations from farmers and ranchers.
Unmanned Aerial Systems (UAS)
Agricultural operators embrace technology that increases productivity and improves efficiency. UAS will have a major impact throughout the agricultural cycle. They are currently used for soil and field analysis, crop monitoring, and livestock health assessment. As this technology evolves, the capabilities of UAS are growing rapidly. Insurers must stay informed about how this technology will be used on the farm.
Currently, there are three rules that apply to UAS operations:
As the technology becomes increasingly affordable, investment in UAS is an important choice and there are many liability exposure issues that must be contemplated. Training and compliance are critical to risk management.
Legalization and Decriminalization of Cannabis
As more states “legalize” and decriminalize cannabis, traditional farmers are looking to take part in growing this new commodity crop.
As cannabis becomes an attractive cash crop, there’s a focus on finding the most efficient ways to grow it and develop marketing systems. These solutions may come with innovations in lighting or hydroponic water delivery systems.
While cannabis may be legal or decriminalized in a state, federal law still prohibits it. Most banks and credit card companies won’t do business with cannabis businesses due to concerns they’ll be penalized for money laundering. Insurers are not in a rush to offer coverage for this type of business because it is still federally illegal.