Evaluating Risk in a Time of Climate Change – Masterclass

In the last decade or so, weather patterns have become more extreme and unpredictable. Different parts of the globe have experienced a range of devastating rains, scorching droughts that fuel wildfires, hurricanes, and unseasonable temperatures. Crop plans that made sense a few years ago, may need to be modified to take into consideration the risk of extreme weather events. Farming has always been a risky venture. With little control over the weather, a freak snowstorm or severe hurricane can wipe out wide swaths of production. And as weather patterns become more erratic, the high value crops are also the highest risk. Climate change has affected agri-business strategies – from deciding what to grow, when to plant, and what infrastructure is needed. In this course, we will go through 2 case studies of how farmers used financial modeling to evaluate shifting priorities, risk tolerance and profit goals. We will discuss a flower farm in a region with increasing risks from wild fires and drought (B-Side Farm) and a vegetable farm with increasing risks for severe weather events (like hurricanes and winter storms).