Drought index leaves Bavarian farmer without crop insurance payout

A Bavarian farmer whose grain maize has suffered severe drought damage will receive no insurance payout because rainfall at the relevant weather station exceeded the policy’s threshold. BR reports that the case highlights the limits of index-based drought cover.

In October, Michael Weichselbaumer’s organic maize fields in Pfaffenhofen an der Ilm had short, brown stalks and small cobs missing rows of kernels. Mould and fungal disease had left 35 of his 55 hectares in what he described as an economic write-off. He reported the damage to his multi-risk insurer, which includes drought cover, but the claim was rejected.

The policy uses rainfall measurements rather than the condition of the crops. Coverage is triggered when recorded precipitation falls below a set threshold. For the damaged field, that figure was 198 litres, while the weather station responsible for the region recorded 205 litres. The insurer therefore did not classify it as drought damage.

Markus Maier of Versicherungskammer Bayern said drought losses are difficult to assess in the same way as damage from hail, storms or heavy rain. Those events have a direct, identifiable impact on plants, while a lack of rain causes harm gradually over time. The insurer uses German Weather Service stations to calculate the index. Bavaria has about 15,000 stations, or roughly one for every 50 square kilometres.

The system can produce contrasting results, Weichselbaumer said. Another of his fields, about three kilometres away, had a rainfall reading of 194 litres, which met the drought threshold. Yet its maize was healthy, with large, full cobs, and he did not file a claim.

Maier said drought cover was one of the biggest challenges for multi-risk insurance. A severe drought year such as 2026, with extensive crop losses, can push the model beyond what insurers can cover. Andreas Weiß, a professor at Coburg University who researches natural hazard damage, said the industry should consider whether drought losses are still unpredictable risks or have become regular events, and how farming can adapt to changing conditions.

Weichselbaumer pays nearly 140 euros per hectare for the multi-risk policy, with about 70 euros going towards drought cover. The state covers 50 per cent of eligible policy costs, but the farmer still faces a substantial bill across his 300 hectares. He said the lack of compensation despite the damage had led him to consider whether to insure his crops again.