Don’t Let Your Farm Fall Victim to the Next Flood Event

Flooding and excessive precipitation cost U.S. farmers $6.7 billion a year in crop losses. And these losses are projected to continue rising as warming temperatures drive more frequent and intense precipitation events. The consequences are playing out in fields across the country.

In April 2025, regions in Arkansas and Tennessee were submerged by three months of rain in just a few days. With nearly one-third of all planted acres flooded out –– affecting corn, rice, soybeans, and wheat fields –– experts estimated that the economic fallout could be up to $10 million.

Flood risk isn’t confined to any one region. Specialty crop producers across the country are facing greater exposure to extreme weather events and the financial consequences that come with them.

In this environment, it’s critically important for growers to protect themselves with a two-pronged risk management approach: develop a flood emergency response plan and secure appropriate insurance coverage.

PLANNING AHEAD: DEVELOP A RISK MANAGEMENT STRATEGY

A comprehensive risk management strategy should include a Flood Emergency Response Plan (FERP), a playbook designed to ensure the continuity and survival of your operation in the event of a flood.

The plan should:

• Assign a point person. Every grower needs a FERP coordinator responsible for monitoring storm risk and making the call to activate the plan. Before a storm hits, this individual should watch forecasts closely, particularly during peak growing season when standing water can devastate a crop. Once activated, they direct resources before, during, and after the emergency.
• Designate other specific roles. Create a list of other key employees to support the FERP coordinator. Ensure they understand their specific responsibilities in the event of a flood. These tasks may include clearing drainage systems to minimize flooding, securing building openings or trellises, or moving motors to a place where they are less likely to be submerged in water.
• Define equipment shutdown procedures. Assign one person to safely shut down any equipment at risk, including irrigation systems, cold storage units, and processing machinery. Ensure they understand proper shutdown procedures and are prepared to safely restart equipment once floodwaters recede.
• Prepare emergency supplies. Stock an emergency supply kit with items for both your people and property: drinking water, non-perishable food, first aid kits and emergency lights for anyone on site; sandbags, tarps, and portable pumps to protect structures and storage facilities. Confirm that fuel tanks are full in emergency generators, fire pumps, and vehicles.
• Establish on-site worker policies. Policies should cover basic safety information, such as not moving wet electrical equipment and immediate compliance with evacuation orders. They should also address produce-specific risks. Workers should know to flag any fields or crops that encounter floodwater immediately, and leave contamination assessment to a qualified specialist before any harvesting or replanting begins.
• Create a communication plan. All employees, whether on-site or not, need timely updates as a storm develops. Establish a clear protocol for how information will be shared, such as through a phone tree or group text message. Make sure the plan includes guidance for when workers should be on standby for flood preparation.
• Address recovery: Even the best-prepared farms will face challenges in the aftermath of a severe storm. Identify one person to lead recovery efforts, such as coordinating cleanup, managing repairs, reporting utility outages, and documenting crop and property losses. Thorough documentation will be critical if you need to file an insurance claim.

SECURE APPROPRIATE INSURANCE PROTECTIONS

When a flood hits, the right coverage you secured in advance can help you recover and rebuild.

Two essential policies for specialty crop growers include:

• Crop insurance: The USDA’s Federal Crop Insurance Corporation connects growers to coverage that protects against losses from extreme weather events. Federally subsidized premiums make participation widely accessible, though policies may differ across insurers. For flood-specific protection, consider parametric coverage, which triggers a payout based on a predefined weather event, rather than a documented yield loss.
• Business interruption insurance: This policy covers lost income and other related expenses that arise after a disaster. A major flood may prevent replanting for an entire season, but fixed costs like payroll don’t pause. This coverage helps bridge the gap until your operation is back up and running.

Adopting this two-pronged approach helps put your operation in the strongest position possible to prepare for and respond to a flood event. Reach out to an expert advisor or broker to make sure you have the right plan and coverage in place.