AEM Report Reveals Farmers Struggle as Drought and Climate Pressures Drive Financial Losses

With nearly half of farmers suffering major weather-related losses, more are turning to real-time data and precision monitoring.

GERMANTOWN, MD, March 31, 2025 — Farmers across North America are feeling the financial strain of severe weather, with nearly half (48%) reporting weather-related losses exceeding $10,000 in the past year, according to AEM’s newly released 2025 Agricultural Weather Challenges Report.

The study, which surveyed 128 active farmers across nine countries, found that weather remains a critical concern for agriculture, ranking just behind labor costs as the industry’s biggest challenge. The findings highlight a growing shift toward precision agriculture, as farmers increasingly move away from traditional weather information sources in favor of real-time, localized data. Key findings include:

· 48% of farmers reported weather-related financial losses exceeding $10,000. Small family farms were particularly hard hit last year, with 60% of operations under 100 acres reporting significant weather-related losses.

• Drought is the most widespread weather issue, impacting 82% of farmers.
• Use of traditional weather sources (TV and free weather apps) has declined by 5% since 2023, as farmers seek more accurate, real-time monitoring.
• On-site weather monitoring adoption has increased by 7% since 2023, reflecting a shift toward data-driven decision-making.

“This report confirms what we’re hearing from farmers every day—weather challenges are not only persistent, but they’re forcing a shift in how growers make decisions,” said Chris Sullivan, Agriculture Market Sector Leader at AEM. “Traditional weather sources alone are no longer enough. More farmers are turning to real-time, localized monitoring to build resilience, optimize resources, and protect their operations from increasing climate volatility.”

Chris Sullivan
Agriculture Market Sector Leader, AEM

The report also highlights notable geographic differences in how farmers view climate challenges:

• In the U.S., concern over climate change has declined, with only 53% of farmers expressing concern, down from 59% in 2023. Farmers are focused on drought resilience, soil moisture monitoring, and irrigation optimization.
• In Canada, climate concerns have risen sharply, with 67% of farmers now worried about its effects—double the percentage from 2023. Many are prioritizing better weather forecasting and air quality monitoring to deal with wildfires and extreme weather shifts.

The full 2025 Agricultural Weather Challenges Report provides actionable insights for farmers, policymakers, and agricultural technology providers to address these challenges and foster greater resilience.

About AEM

AEM is combining global technology leaders to empower communities and organizations to survive and thrive in the face of escalating environmental risks. By deploying intelligent sensing networks, operating a secure and scalable data management infrastructure, and delivering high-value analytics through a suite of end-user applications, AEM serves as the essential source for environmental insights. These technologies enable positive outcomes, helping reduce environmental impact and creating a safer world. For more information, visit https://aem.eco/.