Aon and SAGE to launch AI-driven crop insurance

The new program combines data on soil, water, weather, and human activity using artificial intelligence. This makes it possible to price insurance for crop growers based on their individual risks at the specific field level, unlike federal insurance, which calculates rates based on the average risk for each county. The program is scheduled to launch for the 2027 growing season in partnership with Minnesota-based insurer AgriCap for corn and soybean producers across 15 states, which the companies have not yet specified.

The new coverage is designed as a supplement to federal insurance, which covers about 90% of US corn and soybean planted area. Farmers will be able to purchase federal insurance for a certain percentage of the expected harvest, and SAGE policies to cover volumes above that level. According to The Progressive Farmer, Aon's modeling shows potential savings for some farmers ranging from $10 to $15 per acre of additional coverage.

Currently, the pilot project is being implemented by the Resilient Agriculture Lending and Insurance Coalition (RALIC) with partial funding from the Michigan Department of Agriculture and Rural Development. The pilot covers over one million agricultural acres, which accounts for approximately 12% of Michigan's agricultural land. Aon and SAGE representatives note that field analytics and AI make it possible to translate land management information into risk signals understandable to the insurance market and reward farmers for investments in sustainability.

According to a 2026 McKinsey & Company report, about 17% of farmers worldwide use generative artificial intelligence. Interested producers and insurance agents can obtain additional information ahead of the spring 2027 enrollment period at sage.ag.