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Climate Change Skepticism of European Farmers and Implications for Effective Policy Actions

  • A joint report by the European Commission and EIB published in May 2025 reveals the EU agriculture sector loses €28.3 billion annually from extreme weather across 27 member states.
  • The report, which includes analysis by Howden and RiskLayer GMBH, warns that climate change drives increased volatility, potentially raising annual losses by up to 66% by 2050.
  • Only about 20-30% of weather-related agricultural damages in the EU are covered by insurance schemes, whether public, private, or mutual, with drought responsible for more than half of these losses and having a particularly severe impact in southern European countries.
  • The report calls for EU-wide expansion of risk-transfer tools like catastrophe bonds and parametric insurance, as well as rapid-response funding to support farmers and ease government budgets.
  • These measures aim to bolster agricultural resilience, reduce economic shocks, and secure food systems amid rising climate risks and constrained farmer access to finance.
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Seed World broke the news in on Tuesday, May 20, 2025.
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