EU Farmers Lose €28 Billion Annually Due to Extreme Weather
Brussels (Reuters) — Extreme weather events driven by climate change are costing the European Union’s agricultural sector an estimated €28.3 billion annually, according to a new EU-backed analysis. The figure represents nearly 6% of the EU’s yearly crop and livestock production value.
The study, supported by the European Commission and the European Investment Bank and conducted by global insurance broker Howden, reveals that only 20% to 30% of these climate-related losses are currently covered through insurance—whether public, private, or mutual.
EU Agriculture Commissioner Christophe Hansen called for immediate action, urging member states to prioritize climate risk management using existing agricultural subsidies. “We need to do something to cover the remaining losses,” he said, highlighting the growing vulnerability of the farming sector.
The report underscores a dual challenge: while agriculture suffers heavily from the effects of climate change, it also significantly contributes to environmental degradation. Methane emissions, excessive fertilizer use, and unsustainable water extraction remain major concerns within the sector.
Meanwhile, Europe’s farming industry has seen rising discontent over green policies. Powerful agricultural lobby groups have led widespread protests over the past year, demanding that environmental regulations be relaxed.