CLIMATE CHANGE EFFECTS AND AGRICULTURAL SECTOR. ANY PERSPECTIVE FOR AN EUROPEAN RISK MANAGEMENT POLICY?

The struggle against climate change represents one of the ‘new challenges’ whichagriculture will have to face in the immediate future. The “Health Check” of the CommonAgricultural Policy together with questions about the efficacy and simplification of the directaid system and the adaptation of support tools for the European Union market, give climatechange a central role in the relationship between agriculture and the environment, in that theyare considered likely to affect the chances of success in terms of bioenergy increase and amore efficient management of hydro resources (Com 2007/722 fin).Agriculture being subject to the effects generated by climate change should identifyand develop solutions that will favour the adaptation of cultivation systems to the changes incourse and should also make valid efforts in terms of mitigating and combating thisworldwide phenomenon. One of the effects generated by the climate change is inherent to themanagement of risks in agriculture brought about by the meteorological conditions (Com2007/722 fin). It is, therefore, necessary to define measures that can compensate for thechanges and, at the same time, promote the adaptations that are necessary in the new scenario,taking into account the various local environmental conditions.This paper try to point out some of the main aspects that could condition thedevelopment of insurance in agriculture in the light of the effects generated by climate changeand to indicate the role that could be played by the public sector at European level.With regard to this, the role of risk management systems in agriculture could be ofgreat importance, especially in Europe as farmers have to make their decisions in a morecompetitive market and have also to deal with risks and global crises as a result of marketliberalisation process and a diminished market and price support policy. The necessity toevaluate the ability of agriculture to mitigate the effects of climate change and to examine thepossibility of integrating the climate change aspect into agricultural support programmes isalso set out in the “Green Paper on Adapting to Climate Change in Europe” (Com 2007/354fin).