4 Trends Influencing Risk Management on the Farm in 2026

It’s a familiar story playing out across many industries nationwide: Tariffs, economic uncertainty, labor constraints, cyberattacks, and other challenges are taking a toll on profitability for food producers. A proactive approach is critical for easing pressure. Businesses that use this time to improve their supply chain resilience, find ways to address worker shortages, and implement enterprise risk management tactics to improve risk maturity can rise above the collective challenges to thrive in 2026.

Consider these trends facing agribusiness in the coming year — and how to manage your company’s risk accordingly.

Trend #1: Rising Costs

Growers are seeing increased expenses on two fronts in particular — rising raw material prices and tariffs. Tariffs have hit both food imports, which fill gaps during off seasons or supply items not grown in the U.S., and on food packaging materials like aluminum and steel.

What businesses can do: Diversifying partnerships with both local and international suppliers will be important for navigating tariff volatility. Alternative financing may also improve cash flow. Agribusinesses should consider trade credit insurance to help protect against non-payment of invoices.

Trend #2: Labor Shortages

The already strained labor market is juggling even more obstacles due to recent federal immigration enforcement efforts. Workforce availability is therefore becoming less predictable, creating potential for operational disruptions.

What businesses can do: First and foremost, bolster your retention and recruitment with better benefits. According to the HUB 2025 U.S. Workforce Vitality Gap Index, 73% of employees feel that a comprehensive, personalized benefits program would increase the likelihood they’d stay at their company. Diversification, including both third-party labor contractors and even automation where appropriate, can help fill in gaps to help maintain operation levels.

Trend #3: Climate Resilience

Greater risk from climate change and ongoing drought conditions are affecting production and driving up input costs. At the same time, an increased number of severe weather threats poses a threat to facilities and heightens concerns about long repair times due to parts shortages or impacted infrastructure.

These factors are evident in insurance policies: Despite the overall decline in property insurance premiums, it will remain challenging across agribusiness, with rates rising 5% to 15%. On the positive side, stock throughput insurance rates will remain competitive for non-perishable, low-volatility goods in the supply chain. But rates for insuring highly perishable and volatile commodities are likely to increase.

What businesses can do: Insurers will be focusing on best-in-class agribusinesses with favorable claims histories, so demonstrating strong enterprise risk management will be crucial for securing affordable coverage and avoiding the need for alterative risk transfer.

Business continuity planning that considers the full supply chain also is key. For example, not only will food production operations need disaster-proof manufacturing facilities, but also take extra steps to ensure the supply chains of businesses that provide packaging remain intact.

Trend #4: Increasing Cybersecurity Vulnerabilities

Ransomware and data breaches still represent major vulnerabilities. In fact, cyberattacks in the food and beverage industry doubled from the first quarter of 2024 to the first quarter of 2025. Adoption of automation and artificial intelligence (AI) is increasing exposures, particularly when implemented without proper employee training or using legacy tech systems.

What businesses can do: Underwriters are demanding businesses strengthen both security measures and employee education in order to obtain cyber coverage. Companies are getting the message: The HUB Profitability and Resilience Survey found that 39% of agribusiness industry leaders are considering increased insurance coverage for tech and cybersecurity risks — more than for any other risk.

STAY PROACTIVE

Risks in agribusiness have increased — and so have insurance premiums. Ask your broker what kind of insurance strategy meets your risk profile and budget. Working with an experienced broker with deep industry knowledge can help growers identify weaknesses in their risk management plans, find solutions, and procure coverage to help them stay resilient in 2026 and beyond.