The agricultural sector of the European Union (EU) incurring losses of 28.3 billion euros per year due to bad weather conditions.
The EU Commission and the European Investment Bank (EIB) published the results of a study entitled “Insurance and Risk Management Instruments for Agriculture in the EU”.
The study states that 27 EU member states annually lose 6 percent of the crop of agricultural crops and livestock products due to various adverse weather phenomena, such as drought.
The report notes that the annual losses of the agricultural sector in the EU countries due to poor weather conditions amounted to 28.3 billion euros, of which 17.4 billion euros – yield loss and 10.9 billion euros – livestock loss.
more than 50 percent of climatic risks in agriculture of the EU countries are associated with drought and it is necessary to pay more attention to this area.
The study notes that drought, frost, hail and excessive precipitation cause about 80 percent of the climate of agricultural losses in the EU. Only 20-30 percent of the climate of farms in the EU are insured, and agricultural insurance should be expanded to reduce these losses.