Parametric Service to offer instant relief to farmers

CNH Capital, Shepherd Compello, BNP Paribas Leasing Solutions and Swiss Re have collaborated to launch the Parametric Service in an effort to protect European agriculture against extreme weather challenges.

The solution delivers automated financial relief, boosting resilience and cashflow for farmers hit by extreme weather conditions.

“Unlike insurance, which often requires lengthy assessments, this new service is built on transparency and speed,” a statement from the companies read. “It is a contractual parametric service integrated directly into CNH Capital’s financing agreements and is designed to mitigate the financial cost of machine ‘non-use’ during periods of extreme weather.”

When pre-agreed weather triggers are met, the service is activated automatically, removing the need for a complex claims process and ensuring a cashflow injection precisely when the weather is affecting operations.

Weather triggers are based on the intensity and duration of excess rain or drought, and measured by independent, verifiable data from satellite sources. Upon activation, the customer automatically receives a reimbursement equivalent to one monthly instalment per year.

The service begins its phased rollout in February, starting in Spain, with aims for wider European availability throughout 2026.

Elias Mendes, head of CNH Capital in EMEA, commented: “This partnership is a testament to our unwavering commitment to the sustainability and operational resilience of our customers in Europe. Agriculture is increasingly impacted by climate volatility, and this service provides a simple, immediate financial safety net.”

“The parametric model is the future of climate risk management because it is driven by independent, verifiable data,” said Stefania Mancuso, business developer officer at Shepherd Compello. “This system provides certainty and automatic liquidity when weather conditions prevent farmers from using their equipment, ensuring they can focus on recovery rather than bureaucracy.

Gianni Biason, senior underwriter special risks at Swiss Re, added: “We’re pleased to have worked together to design an innovative solution that will deliver real value to farmers in Spain facing more frequent weather risks. The cooperation with CNH Capital, Shepherd Compello and BNP Paribas Leasing Solutions is a strong example of how we work with our partners to bring parametric solutions to the market, while creating a scalable model that can be replicated across countries.”