Parametric service strengthens financial resilience for European farmers

CNH Capital, together with BNP Paribas Leasing Solutions, in collaboration with Shepherd Compello and Swiss Re, has unveiled a new Parametric Service designed to strengthen the financial resilience of agricultural customers across Europe facing increasing climate volatility.

The new service delivers automated financial relief to farmers affected by extreme weather events such as excess rainfall or drought. Embedded directly into CNH Capital’s financing agreements, the contractual parametric solution is designed to offset the financial impact of machinery “non-use” during periods when adverse weather prevents normal operations.

Unlike traditional insurance products, the Parametric Service operates without claims or loss assessments. Activation is triggered automatically when pre-defined weather parameters – based on the intensity and duration of rainfall or drought – are met, using independent and verifiable satellite data. Once triggered, customers receive an automatic reimbursement equivalent to one monthly instalment per year, providing timely cash flow support.

This initiative builds on Swiss Re’s parametric experience, leverages Shepherd Compello’s specialised risk expertise to further strengthen the 25-year Joint Venture between CNH Capital and BNP Paribas Leasing Solutions.

“This partnership is a testament to our unwavering commitment to the sustainability and operational resilience of our customers in Europe,” he said. “Agriculture is increasingly impacted by climate volatility, and this service provides a simple, immediate financial safety net, embedding innovation directly into our financing.”

Stefania Mancuso, Business Developer Officer at Shepherd Compello, emphasised the benefits of the parametric approach. “Our primary goal was to design a responsive risk transfer mechanism that prevents the risks of traditional approaches,” she said. “The parametric model is the future of climate risk management because it is driven by independent, verifiable data. 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.”

“Integrating this service seamlessly into the equipment financing offer enhances the value proposition we bring to the market,” she said. “It represents a new milestone in our 25-year partnership with CNH Capital, demonstrating how financial services can evolve to properly address the customers’ needs and here manage climate risks and support the essential activities of the agricultural sector.”

Gianni Biason, Senior Underwriter Special Risks at Swiss Re, added that the collaboration demonstrates the scalability of parametric solutions. “We’re pleased to have worked together to design an innovative solution that delivers real value to farmers in Spain facing more frequent weather risks,” he said. “The cooperation creates a scalable model that can be replicated across countries.”

The Parametric Service will begin a phased rollout this month, starting in Spain, with broader European availability planned throughout 2026.