A comprehensive analysis supported by the European Commission and European Investment Bank indicates that extreme weather, exacerbated by climate change, results in annual losses of €28.3 billion for EU farmers. This figure represents approximately 6% of the EU’s total crop and livestock production. Alarmingly, only 20-30% of these losses are covered by insurance, leaving the majority of farmers vulnerable to climate-related financial setbacks.

The report highlights that droughts account for more than half of the agricultural losses, with southern European countries like Spain and Italy being particularly affected. Projections suggest that by 2050, in a severe year, losses in these regions could reach €20 billion. The European Investment Bank plans to support farmers through investments in irrigation, water projects, and financial guarantees, aligning with a new EU water strategy aimed at enhancing resilience.

In response to mounting pressures, the European Commission has proposed adjustments to environmental policies, including easing certain green regulations and expediting emergency funding for farmers impacted by natural disasters. However, experts warn that without more robust climate action, crop losses could increase by up to 66% by 2050, underscoring the urgent need for comprehensive risk management strategies in the agricultural sector.

Reference:

Extreme weather costs EU farmers 28 billion euros a year, EU says