The Importance of Improving and Enlarging the Scope of Risk Management to Enhance Resilience in European Agriculture

The upcoming reform of the Common Agricultural Policy will put pressure on agricultural incomes and will cause more price volatility and income risk for farms in the EU. This raises the question if and how farms will survive these disturbances. Farms are able to survive only if they respond appropriately to disturbances. This resilience of farms is explained in this research by analysing the number of strategies that farmers indicate that they will use in a situation where the current CAP will continue and in a situation where it will disappear. The outcomes show that under both scenarios large more specialised farms with young farm heads are most resilient, and small more diversified farms headed by old farmers are least resilient. Results also show that farms that indicate to exit are the ones that are most dependent on CAP support, have old farm heads, and are part-time and diversified farms.

Partial replacement of chemical fertilizers with animal manures in an apple orchard: Effects on crop performance and soil fertility

This study analyzes the economic and energy dimensions of greenhouse gas (GHG) emissions from agriculture at the European level, making a regional comparison for the period 2000–2022. The research assesses the sustainability and resilience of agricultural systems through regional comparisons, analyzing emissions at the farm and agricultural land level using indicators such as emissions per capita, emissions relative to economic value and emissions per hectare of agricultural land, providing insights into the disparities between Eastern, Northern, Southern and Western European regions. The results reveal significant variations in emissions intensity and sustainability practices between regions, with Northern Europe showing the highest emissions per unit due to intensive agriculture, Southern and Eastern Europe showing lower emissions influenced by climatic conditions and economic transitions, and Western Europe showing a balance between agricultural intensification and sustainability due to early adoption of advanced technologies. The study underlines the importance of adapting regional strategies to increase sustainability and energy resilience in agriculture, providing valuable insights for integrating renewable energy sources, optimizing resource use and implementing targeted policies to reduce emissions.

Sustainable agriculture has emerged as a cornerstone of Europe’s strategy to reconcile food production with environmental stewardship and rural viability. This study examines the economic and environmental benefits of sustainable agriculture in Europe, drawing on recent data, case studies, and research findings. We review farm-level and regional evidence on practices such as organic farming, agroecology, conservation agriculture, and integrated crop-livestock systems. The results indicate that sustainable agricultural practices can significantly reduce negative environmental impacts – including a ~20% reduction in greenhouse gas emissions since 1990 and a ~20% decline in nitrate pollution of waterways – while enhancing biodiversity and soil health​. At the same time, many sustainably managed farms achieve competitive economic performance: although crop yields may be modestly lower, substantially reduced input costs and price premiums often result in similar or higher profits compared to conventional farms​. Case studies from across Europe illustrate increased farm resilience to climate extremes, improved rural employment (10–20% more jobs per hectare on organic farms), and growing consumer demand supporting higher farm incomes​. We discuss how these benefits vary by region and farming system, and the role of EU policies (e.g. the Common Agricultural Policy and Farm to Fork strategy) in promoting sustainable practices. While challenges such as transition costs and yield gaps remain, the overall evidence base suggests that sustainable agriculture in Europe delivers multifaceted economic and environmental gains. These findings support scaling up sustainable farming as a key component of a green and competitive European food system.

SummarySmart insurance designs (e.g. tailoring insurances to the individual farm) and technological progress (e.g. advances in satellite technology) enable improvements in insurance schemes. Spatially and temporally more detailed information as well as better knowledge of the relationship between weather and yields losses can reduce basis risk of insurances. However, the use of new and better data does not automatically lead to better insurance schemes. The SURE‐Farm project contributes to the understanding of weather risks and new insurance mechanisms as possible tools to increase the resilience of European agriculture to weather extremes. Therefore, we aim to show how to integrate newly available data sources for different agricultural outputs, namely grassland, crop and dairy production in different European regions. In the four contributions summarised here, we evaluate currently existing index insurance schemes and provide fundamental insights for future developments of index insurances for the crop and livestock sector in Europe. We first summarise and discuss existing index‐based weather insurances. Second, we investigate the drought risk reduction potential of different drought indicators in two case studies on different crops in Eastern Germany. Third, we examine the relationship between hot and humid weather and milk yield losses for dairy producers in Flanders.

The provision of better risk management tools for farmers and the reduction of adverse effects from pesticide use are both important goals of agricultural policy – but are potentially interrelated and might contradict each other. In this article, we analyze the relation of crop insurance and pesticide use in European agriculture using the examples of France and Switzerland. In our conceptual and empirical framework, we account for the complex structure of insurance uptake, land use and pesticide use decisions of farmers, potentially leading to insurance - pesticide use interactions both at the intensive and extensive margin. Our empirical results indicate a positive and economically significant relation between crop insurance and pesticide use in European agriculture. The findings suggest that without crop insurance, pesticide expenditures would be 6 to 11% lower. However, the importance of extensive and intensive margin relations differs between France and Switzerland and is related to country specific characteristics. We conclude that new risk management instruments should account for potential effects on input use.

Objectives: A common understanding of the term “vulnerable populations” in the European agricultural context is needed. Therefore, the purpose of this paper was to identify vulnerable populations working in European agriculture. Methods: Participatory dialogue with members of the Safety Culture and Risk Management in Agriculture (SACURIMA) network was used to identify and build consensus on the major vulnerable groups of people who work in European agriculture. Results: Five groups of vulnerable people were identified, which included: (1) foreign-born farmworkers (including both immigrants and refugees); (2) migrant and seasonal farmworkers; (3) beginning farmers (those with <5 years of experience); (4) farm families (including women, children, and older adults), and (5) farmers and farmworkers who have physical, mental health, or intellectual disabilities. Conclusion: By developing a consistent understanding of vulnerable populations working in European agriculture, we can promote consistency in health and safety messaging, measurement of health and safety constructs, and implementation and dissemination of health and safety programs and information.

International trade agreements and reforms of the European Common Agricultural Policy increase the importance of agricultural risk management as a means to stabilise farm incomes. Income Stabilisation in European Agriculture addresses farm income and risk management issues from various perspectives. In this title, a cohesive work is brought together on historic income data, quantitative analyses of future policy scenarios, actual farmers' perceptions and an updated view on various risk management instruments. In-depth analyses focus on Germany, Hungary, the Netherlands, Poland and Spain.Overall findings are synthesised in policy recommendations for agricultural risk management in European agriculture. For academia, this publication brings together an interesting variety of quantitative and qualitative methods to understand and interpret risk management concepts in agriculture. For public and private stakeholders analyses and reflections can be used in debating the domain of policy reforms, risk exposure and risk management in European agriculture.

The European agriculture, today, is facing radical changes, generating a highly and uncertain framework, that increase the difficulty of the entrepreneurs’ choices. This has led to a renewed focus on the risk management in agriculture, recognized, among other things, as one of the six European priorities addressed by the new CAP. Based on these considerations, the work focuses on the issue of the insurance and financial instruments as a contribution to a new approach to risk management leading to a rethinking of the logic used up to now. In particular, through the analysis of the American and Canadian risk management, the paper will offer insights useful to feed the ongoing debate and to define new insurance instruments for our agriculture.

Coping with Crisis Risk in European AgricultureThis article summarizes the major findings of an international workshop on coping with crisis risk in European agriculture. The workshop took place as part of an EU sixth framework project entitled: Income stabilisation: Design and economic impact of risk management tools for European agriculture. The meeting focused on ex ante crisis risk, which is defined as a foreseeable and predictable risk that potentially hits many farms at the same time. More specifically, the workshop focused on technology risks ‐ such as food safety and livestock epidemic risks ‐ and weather risks. State of the art discussions pointed towards little attention being paid to crisis risk management in EU agriculture and the incompleteness of risk management instruments available. Proposed solutions, although not entirely agreed upon by all workshop participants, envision some form of public–private partnership. For technology risks, which are rather‘manageable’ by individual farmers, partnerships are recommended to be a mix of regulation, risk mitigation and non‐subsidised market instruments with a clear focus on incentives for risk prevention. For weather risks, these partnerships include financial aspects whereby governments offer free cover for the catastrophic part of losses. The Income Stabilisation project will integrate workshop recommendations with wider research project activities and will eventually advise on prospective risk management instruments for various farm types and regions throughout the European Union.

Зміну клімату визнано однією з найсерйозніших сучасних загроз довгостроковим цілям суспільного розвитку. В сільському господарстві такі зміни провокують недоотримання агровиробниками гарантованих доходів і ризики продовольчої безпеки й здатні в цілому негативно вплинути на стійкість агросистеми. Забезпечення стійкості сільськогосподарського виробництва пов’язане з його екологізацією, кліматичною нейтральністю й високою опірністю негативним наслідкам різких кліматичних змін. Дослідження ризиків стійкості сільськогосподарського виробництва повинно мати системний характер і прив’язку до конкретних умов певної території.Ризики стійкості вітчизняного агровиробництва пропонується групувати за економічною, кліматичною, екологічною, соціальною сферами їх прояву. Для ефективної протидії негативним наслідкам кліматичних змін у сільгоспвиробництві й зменшення впливу на клімат з боку аграрного сектору необхідними є своєчасне прогнозування й управління відповідними ризиками, для чого має бути сформована система індикаторів стійкості. Це дозволить визначати вразливості й прогалини в спроможності забезпечення стійкості, а також оцінювати ефективність заходів з нівелювання негативного впливу несприятливих чинників на стійкість агрогосподарювання.Для умов України запропоновано комплексну систему індикаторів стійкості сільського господарства, яка включає чотири блоки: економічну, екологічну і кліматичну, соціальну стійкість, а також кліматичну нейтральність. Ключовими орієнтирами досягнення стійкості визнано: забезпечення національної продовольчої безпеки і доходів аграріїв; зниження волатильності врожайності сільгоспкультур; зменшення викидів вуглецю в результаті агрогосподарювання; забезпечення кадрового потенціалу агровиробництва. Розрахунки відповідних показників засвідчили, що в довоєнний період (зокрема, у 2021 р. порівняно з 2015 р.) ситуація не була загрозливою лише в економічній сфері. Водночас мали місце суттєві загрози у сферах екологічної і кліматичної стійкості, а також кліматичної нейтральності.

Both policy and market forces are causing unprecedented changes in agricultural structure and management in both the United States and in Europe. These changes will have profound impacts on the role of universities and extension services who provide information and education to farmers. This paper discusses some of the emerging and anticipated changes in information content and delivery in both the US and the EU. Some of the primary issues US agricultural producers will need to address as a result of the changes in the agricultural industry and policy include: strategic positioning, transferring management capabilities, frequent performance monitoring, evaluating new technology, monitoring external factors, managing information, and accountability. The information needs of farmers in Europe are closely linked to the evolution of the Common Agricultural Policy (CAP) of the European Union. The general agricultural policy framework is briefly presented in the paper. Price reduction, agri-environmental measures enhancement, and rural development policy are the most important elements of CAP reform. European agriculture is in the midst of major changes, mostly started in 1992, but destined to continue and increase in the near future. Different approaches to manage the agricultural sector involve the need for a different information system for farmers. It means not only new content in information, but also new ways to inform and do technical assistance. The primary information needs out are: farm management, risk management, EU programs and measures, quality production, low input and organic farming, marketing and advertising management, new technology introduction, structural adjustment funds management, investment decisions, rural tourism and recreational activities management. European agriculture is on the path to large and challenging changes. There is no way for farmers alone to manage these changes, and remain competitive in the market. Providing information has become the most important part of the extension activity. Information must include training sessions, demonstrations in the field, and assessment, together with the farmers, of the activities and the results obtained. There are many similarities in the farm management information needs of farmers in the US and EU. A critical factor for the Extension Services in the future is to adjust rapidly to the changes, and quickly develop new content and delivery plans for farmers' training. The challenge for universities and extension services to respond to the information needs will strain their resources. Collaborative efforts between our institutions may prove more valuable as faculty attempt to develop research and educational programs relevant to the emerging information needs. In addition, cooperation with the growing private sector agricultural education programs will probably be essential if public education and information delivery systems are to remain relevant.

This study evaluates the risk management practices employed by agricultural cooperatives with the aim of enhancing profitability and farmer resilience. Agricultural cooperatives play a crucial role in supporting farmers, particularly in mitigating risks associated with environmental, economic, and market fluctuations. By analyzing various risk management strategies, including insurance, diversification, and financial planning, this research assesses their effectiveness in improving cooperative profitability and strengthening farmers' ability to withstand external shocks. Through a combination of qualitative and quantitative methods, data was gathered from a sample of agricultural cooperatives, focusing on their approach to managing risks and the impact of these practices on their operational success and farmer welfare. The findings suggest that effective risk management practices not only improve the financial stability of cooperatives but also enhance the resilience of farmers, enabling them to cope better with market uncertainties and climatic changes. This study highlights the importance of adopting comprehensive risk management frameworks within agricultural cooperatives and provides recommendations for strengthening their role in promoting sustainable agricultural development. The results of this research contribute to the broader discourse on agricultural risk management and the role of cooperatives in fostering long-term farmer resilience and economic stability.

Farmers in Minor Irrigation Systems (MIS) experience many difficulties due to severe seasonal or year-round absolute water scarcity that affects their livelihoods. In order to address this problem, the resilience of the vulnerable communities needs to be enhanced through smart investments and appropriate adaptation strategies. Since there is no well-established method for assessing the resilience of the farmers in MIS, this study was aimed to develop a framework and prospective methodology to assess resilience and factors determining the resilience to shocks and stresses of MIS. A structured questionnaire survey was carried out among 188 households belong to eight farmer organizations under 16 MIS located in three Agrarian Service Divisions in the IL3 agro-ecological region in Kurunegala District. The resilience of farming was measured using adaptive capacity or the risk management strategies used at household levels related to farming practices using 20 indicators. Analysis of factors was performed with the principle component method and rotated (from Varimax with Kaiser Normalization technique) factor loadings were extracted to compute resilience index. Using the empirical equation derived from the study, the resilience of MIS was quantitatively determined. The results showed that there is an adequate space to enhance the resilience of farming in MIS by introducing and adapting various risk management strategies. It appears that capacity of the tank, accessibility of services and the trust of farmers both on farmer organizations and the agency officials are some of the key factors which govern the resilience of farming in MIS.

The increasingly volatile conditions of doing business and the existence of societies are a clear reason to explore the category of resilience. The article aims to present and structure selected theoretical and methodological problems concerning resilience in agriculture. The results of a bibliometric analysis indicate a research gap referring to the category of financial resilience. The category of ‘resilience’ is based on relatively modern concepts from business management, particularly those close to risk management theory. Identifying and measuring capacities to build and strengthen resilience seems to be very important. Quantitative and qualitative methods may be used to explore the category ‘financial resilience’ in agriculture. There has been a noticeable research gap in agricultural finance to fill in. The indicator system for measuring the resilience of agricultural enterprises/farms has some limitations related to the aggregated nature of some financial categories. It would be advisable to develop a global measure of risk resistance in parallel (e.g., in the form of a synthetic index).