Abstract Soil moisture (SM) is an important component of the hydrological cycle that can impact runoff generation, evapotranspiration, crop growth, and wildfire behavior. Most studies, however, focus on technical aspects in a single sector, which makes it difficult to understand all of the current and potential benefits of SM information. To address this gap, this study provides a comprehensive review of the literature to clarify how SM information could contribute to economic value in crop yield forecasting, index‐based insurance, water resources management, natural hazards, and irrigation management. Evidence from the literature showed that SM information can generate high economic values by improving decision‐making, reducing economic losses from natural disasters, increasing agricultural efficiency, and enhancing the performance of insurance programs. These benefits, however, are only realized when SM information is used to inform and change decisions.
Radmehr et al. (Sun,) studied this question.