The EU’s agricultural sector loses more than €28 billion a year due to adverse weather conditions, according to a study published on Tuesday 20 May by the European Investment Bank (EIB) and the European Commission.
According to the study, the EU could do more to reduce these business risks, in particular by extending farm insurance coverage.
The analysis warns that the effects of climate change could increase agricultural average annual losses by as much as 66% by 2050, and calls for a more robust risk management system for the sector.
Currently, only 20% to 30% of climate-induced farm losses are insured through public, private or mutual schemes, including those supported by the Common Agricultural Policy (CAP). The study shows that insurance coverage backed by public funding is often more effective than government compensation programmes.
The European Commissioner for Agriculture and Food, Christophe Hansen, has encouraged all Member States to assess and launch new financial instruments under their CAP Strategic Plans “to better prevent climate risks in the agricultural sector”.
Global warming threatens to cause greater volatility in EU agricultural yields and more instability in farm incomes, with losses projected to rise by between 42% and 66% by the middle of the century, according to the study.
Link to the study: https://aeur.eu/f/gxo
Link to the Commissioner’s speech at a conference on the subject: https://aeur.eu/f/gxp (Original version in French by Lionel Changeur)