Jésus, farmer in Mexico and customer of Verqor — “I have always lived here. These are my roots. I was born here, and I remain committed to farming, even today,” says Jesús, a farmer and Verqor customer. “I enjoy seeing the plants, how we plant them, how they sprout, how they grow.”

Farmers in Mexico navigate extreme weather challenges with agritech

How Verqor, an Accion Venture Lab portfolio company, works with farmers in Mexico to address the impacts of extreme weather

AUTHOR

Sebastian Molina Gasman

For three years, Jesús Miguel Ángel waited for rain on his farm in Hidalgo, Mexico, as a persistent drought plagued him and neighboring farmers. “Last year especially was a big blow due to the drought. Many of us producers were hit hard, so many had to reduce our planting areas. I even think that some might not have planted at all.”

Right now, his barley fields are thick and green, but Jesús knows how drastically things can change as the increasing volatility of the weather makes every year a lottery. “Something we need to be very aware of is climate change, which is already affecting us a lot. Last year there was drought. Now, fortunately, we have a lot of rain, the plants look excellent, and the fields are wonderful,” he says. “Let’s hope it continues like this because there may come a time when, due to excessive water, our crops could be lost.”

By working with our partner Verqor, Jesús can weather the unpredictability of running his farm. Verqor provides farmers in Mexico with credit so they can purchase high-quality seeds, fertilizers, and other supplies that protect and increase their yields. More than that, Verqor helps farmers like Jesús to build more resilient livelihoods by planning for the future. Here’s how:

Four ways to help farmers stay resilient in the face of extreme weather

1. Access to finance that enables resilience

Following a challenging harvest, farmers are more cash-strapped than usual heading into their next planting season. Many plant less the following season because they can’t cover the high upfront costs of planting due to their lower income from the previous harvest, setting them up for another year of lacking yields and sales. Farmers need supplies and inputs – and high-quality ones that will yield healthier, more resilient crops – to bounce back.

That’s where Verqor comes in. They provide credit to farmers without requiring them to provide collateral. Farmers like Jesús use that credit to purchase seeds and other supplies from local agri-retailers and rebound after a bad season. “Without that financial support, I don’t think we would have the means to keep working and planting what we are currently planting,” says Jesús. Once it’s time to harvest, farmers sell to their buyers, who can then repay Verqor directly for the loan as part of the sale.

*In addition to serving as a natural border to separate the fields of neighboring farmers, the Verqor team recommends that farmer customers plant cactus to anchor the soil and prevent erosion.*

2. Insurance to safeguard from increasing threats

When extreme weather events impact farmers’ crops, insurance can help them recover from their losses. But insurance premiums are expensive, and just two percent of Mexican farmers take out insurance. For that reason, Verqor embeds crop insurance into its credit product. “Agricultural insurance does help us a lot,” says Jesús. “We have to see agricultural insurance as a backup, not as total payment for a disaster. Even if it’s not mandatory by the financial institution, I would still take insurance; it’s very important for the producer.”

However, it’s not easy for farmers to navigate the complexities of insurance claims, and many don’t understand or trust insurance companies. Verqor has a dedicated team that assists farmers in submitting insurance claims. In 2023 alone, 25 percent of Verqor’s farmer clients experienced a loss due to climate events like drought, hail, and hurricanes. With the help of Verqor’s customer experience team, $2.3 million MXN was recovered for farmers.

3. Satellite imagery to evaluate crop health

Verqor partners with insurance companies that provide data on soil health and climate risks across the regions where their farmers operate. They also work with technology providers that monitor fields using satellite imagery and drone-based analysis to assess crop development and field conditions. This multi-source data approach enhances Verqor’s credit scoring model, allowing them to offer tailored financing aligned to each farmer’s production capacity and risk profile.

The use of satellite images plays a crucial role in the credit analysis process, enabling Verqor to verify productivity levels through NDVI (Normalized Difference Vegetation Index) readings and confirm the accuracy of the information provided by the farmer. In the case of protected agriculture, satellite and aerial data also allow Verqor to validate that greenhouses are installed and operational, adding an additional layer of trust and control.

Furthermore, this data enables Verqor to proactively support farmers with insurance claims in the event of adverse weather or crop failure, reducing recovery times and helping ensure the financial stability of producers. By integrating agronomic insights with financial services, Verqor not only strengthens its credit decisions but also delivers a more resilient and farmer-focused financing experience.

4. Training on regenerative farming and climate-safe practices

Regenerative agriculture can benefit both farmers and the planet, but it’s not easy for most farmers to implement. Verqor provides hands-on training and technical assistance to help farmers adopt regenerative practices, including crop rotation, biodigesters, conservation tillage, and intercropping. The goal is to improve crop yields and build resilience to climate change, pests, and crop disease by improving soil health, increasing water use efficiency, and reducing reliance on synthetic fertilizers and pesticides. Half of Verqor’s farmer customers have now adopted soil management practices that benefit their production and the environment.

“I’m very happy with my son and my daughter and with all the family that is with me, who help me and motivate me to keep moving forward. We all support each other here, which is the most important thing in the field,” says Jesús, standing with his son Miguel.

Working side-by-side on his farm with his son, Miguel, Jesús now sees a pathway to a brighter future for him and his children. Miguel, a recent graduate with a degree in agricultural engineering, is applying his education to their farm. “He gave me the opportunity to study,” says Miguel. “That will serve us both well as we’re trying to combine the technical side with the traditional.” Jesús plans to pass his legacy to his son, saying: “We’re blending his work with mine on the farm. As I tell my son, ‘With your academic preparation and my experience, we can make a great team.’ And that’s what we’re doing.”

As the intensity and frequency of climate shocks grow, the need for financial solutions that lead to more resilient livelihoods for farmers is clear. At Accion Venture Lab, we believe that investing in agri-fintech is a key area for impact. We see a lot of potential to leverage tech to reach more people – including farmers in hard-to-reach, rural areas – who are typically considered too risky or hard to reach by traditional institutions. See how we’ve invested in agri-tech solutions across the world.