Monsanto just dropped $1 billion on better weather forecasts
Congressional paralysis is freezing or slashing national spending on weather forecasting and monitoring. Plans to deploy a next-generation array of satellites known as COSMIC-2 could be cut by lawmakers as part of the sequester spending cuts — if only they would pass a budget. And workers at NASA, which provide data used by climate researchers the world over, are being furloughed.
But Monsanto — that profitable agro-corporation that wields ever-increasing power over the world’s food supply — is taking a smarter approach. As the effects of climate change devastate crops the world over, Monsanto has announced it is buying the Climate Corporation for $930 million. From the press release:
“Farmers around the world are challenged to make key decisions for their farms in the face of increasingly volatile weather, as well as a proliferation of information sources,” said David Friedberg, chief executive officer for The Climate Corporation. “Our team understands that the ability to turn data into actionable insight and farm management recommendations is vitally important for agriculture around the world and can greatly benefit farmers, regardless of farm size or their preferred farming methods. Monsanto shares this important vision for our business and we look forward to creating even greater experiences for our farmer customers.”
Climate Corporation underwrites weather insurance for farmers, basically in real time, using some of the most sophisticated data tools available to determine the risks posed by future weather conditions and events.
And the company doesn’t limit itself to weather data. As politicians, pundits, and people on the Internet continue to argue over whether climate change is real, the insurance industry has for years been operating under the assumption that it is. So Climate Corporation uses data from major climate-change models — the very ones that are under constant assault by doubters — in its calculations.
Climate Corporation manages an eye-popping 50 terabytes of live data, all at once. Besides climate-change models, data is collected from regular old weather forecasts and histories, soil observations, and other sources. The company collects data from 2.5 million separate locations. Given these numbers, it shouldn’t be surprising that Climate Corporation is basically alone in this market.
If Congress continues down the road of spending cuts and government shutdowns, private industry will soon know more about what’s going on with the weather than the government does.