Solutions for better agri-risk management in the European Union

The global agri-food system is facing increasingly complex and interconnected risks. Traditional challenges such as production and market volatility are now compounded by climate change, geopolitical tensions, pandemics, and digital threats, making it harder for farmers to invest and maintain productivity. While there is growing recognition of the need for proactive and integrated risk management—combining measures like climate-smart investments, insurance, and disaster relief—significant gaps in protection remain.
In Europe, climate-related risks, especially drought, are particularly severe and underinsured, accounting for over half of agricultural losses. At the same time, emerging risks such as market disruptions and biosecurity threats are adding further pressure. Addressing these challenges requires a balanced approach that includes risk prevention, risk-sharing mechanisms, and effective post-disaster support.
To better tailor policies, the study groups EU countries into clusters based on factors like water stress, farm structure, and economic reliance on agriculture. It then focuses on five countries—Bulgaria, France, Latvia, Italy, and Slovakia—for deeper analysis, highlighting different risk profiles and experiences with agricultural risk management tools.