TERRX, Measuring Terrestrial Risk & ResilienceTERRX

MAKING THE INVESTMENT CASE FOR SUSTAINABLE AG

Quantifying physical risk and resilience in agriculture

Physical risk: We calculate the financial exposure of agricultural assets and regions to a broad range of hazards and changing conditions, including extreme weather, water constraints, wildfire and long-term shifts in growing conditions.

Resilience: We measure the financial value of adaptation for farmland, facilities, and supply sheds, looking closely at local capacity. And through our Two Fields research initiative, we are developing ways to measure how soils respond to stress to inform financial risk models.

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Our Services

We provide analytical services to connect risk and resilience to business value.

Understand how increasing weather volatility and changing water access could affect your business, evaluate the value of resilience investments already made, and assess where to invest next.

Each engagement is scoped around your specific business case and financial analysis needed.

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Physical-risk
models
Soil-function
research
Local adaptive
knowledge
Analysis scoped to your business decision
One or more service areas, shaped around your decision.

Use Cases

Start with your business mandate.

Corporate sustainability teams

Justify your farmland transition programs. Connect regenerative ag investments to supply reliability, procurement costs and production continuity, giving finance and ERM colleagues evidence for funding decisions.

Farmland asset managers

Strengthen your positioning with LPs. Whether raising a new fund or managing an existing one, substantiate your investment thesis with evidence on property pricing, rental income, asset value and adaptation ROI, supporting both fundraising conversations and ongoing investor reporting.

Agricultural infrastructure investors

Underwrite returns over the asset’s useful life. Test whether facility exposure, water availability and crop supply support the investment case. Assess how adaptation at the facility and across its supply shed could reduce the risk of stranded assets.

Real Asset LPs

Protect the returns your institution depends on. Synthesize portfolio-wide weather and water exposure and local adaptation capacity to inform manager selection, allocation and oversight.

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Why Agriculture is Different

Agriculture’s risks are uniquely broad and responses are uniquely local

Weather threatens both agricultural production and the infrastructure behind it. Water availability depends on local hydrology, infrastructure and competing demands. Land cannot relocate, and biological resilience and soil function can take years to build.

Adaptation depends on local knowledge, available resources and the land’s biological capacity. These differences must be taken into account when pricing risk and evaluating investments in resilience.

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Standing water across farmland on either side of a straight rural road, with farm buildings on the horizon.

Our Research

Quantifying dynamic soil function for risk models across ag finance.

Soil classifications, ubiquitous in ag finance, assume that soils have a static set of attributes.

We know that's not the case: soils of the same type have dynamic function and absorb water, withstand drought and heat, and recover from stress differently.

Two Fields, TERRX’s research initiative, is developing ways to quantify dynamic soil function and its financial materiality for agricultural risk models.

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