With shifting trade policies, climate-related disruptions, and rising costs, agrifood businesses need financial protection to maintain stability. Trade credit insurance helps safeguard revenue, sustain growth, and navigate uncertainty with greater resilience.
The agrifood industry faces an almost unprecedented period of volatility in the months ahead. Geopolitical tensions, extreme weather events, and shifting trade policies are expected to reshape U.S. supply chains and increase financial risks in agri-business. As tariffs on key imports come into play, and unpredictable weather patterns disrupt future harvests, companies must adapt quickly. To mitigate uncertainty, agrifood businesses are turning to trade credit insurance as a safeguard against financial instability.
Key challenges facing the agrifood industry in 2025
The sector is experiencing pressures from multiple fronts, including:
- Trade Policy Volatility: President Trump’s administration has discussed reintroducing tariffs on agricultural imports, including the on-going possibility of a 25% levy on goods from Canada and Mexico, and a 10% tariff has already gone into effect on goods from China. This move is expected to raise food costs, disrupt supply chains, and make space for domestic producers to fill gaps.
- Climate-Related Disruptions: Severe weather events – such as California’s recent wildfires and extreme winter storms in the Southeast – are reducing crop yields, damaging infrastructure, and delaying production cycles.
- Rising Input Costs: Uncertainty surrounding fertilizer prices, growing labor shortages, and fuel costs continue to challenge agribusinesses, driving up production costs and squeezing profit margins.
With these growing concerns, financial risk management has become an essential safeguarding strategy for agrifood companies in 2025.
How trade credit insurance supports agrifood businesses
In light of the inherent volatility of doing business in an industry so affected by weather events and changing trade policies, trade credit insurance has become an increasingly valuable tool in agri-business. Some benefits include:
- Protection Against Payment Defaults: Trade credit insurance shields businesses from the effects of non-payment or insolvency of suppliers and buyers.
- Increased Credit Confidence: Insured businesses can extend more favorable credit terms to customers without assuming excessive risk, allowing for stronger business relationships and growth.
- Market Expansion Security: Companies looking to expand into new markets – particularly those affected by tariffs or geopolitical shifts – can do so with reduced risk.
By integrating trade credit insurance into their risk management toolbox, agrifood businesses can navigate economic instability with greater confidence.
Strategic adaptations for the agrifood sector in 2025
To stay competitive and resilient, agrifood companies should consider the following strategic measures for the coming months:
- Diversifying Their Suppliers: Relying on a broader range of suppliers can help offset trade disruptions.
- Leveraging Risk Management Tools: In addition to the safety net that trade credit insurance provides, products like Coface Business Information tools can make choosing new suppliers safer and easier.
- Freeing up cash flow: Having trade credit insurance means you don’t have to set aside money to cover bad debts, and claims are handled swiftly and efficiently, meaning you get paid and can keep focusing on your business.
A proactive approach to agrifood stability
The agrifood industry’s challenges in 2025 require a proactive approach to financial and operational risk. With shifting trade policies, climate-related disruptions, and rising costs, businesses must adopt robust financial protections to maintain stability. Trade credit insurance serves as a must-have tool in this landscape, allowing agrifood companies to protect revenue, sustain growth, and navigate uncertainty with greater resilience.
As the sector adapts to these challenges, businesses that integrate risk management solutions into their operations will be better positioned for success in the evolving global agrifood market.
