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’ which agriculture will have to face in the immediate future. The “Health Check” of the Common Agricultural Policy together with questions about the efficacy and simplification of the direct aid system and the adaptation of support tools for the European Union market, give climate change a central role in the relationship between agriculture and the environment, in that they are considered likely to affect the chances of success in terms of bioenergy increase and a more efficient management of hydro resources (Com 2007/722 fin). Agriculture being subject to the effects generated by climate change should identify and develop solutions that will favour the adaptation of cultivation systems to the changes in course and should also make valid efforts in terms of mitigating and combating this worldwide phenomenon. One of the effects generated by the climate change is inherent to the management of risks in agriculture brought about by the meteorological conditions (Com 2007/722 fin). It is, therefore, necessary to define measures that can compensate for the changes 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 the development of insurance in agriculture in the light of the effects generated by climate change and 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 of great importance, especially in Europe as farmers have to make their decisions in a more competitive market and have also to deal with risks and global crises as a result of market liberalisation process and a diminished market and price support policy. The necessity to evaluate the ability of agriculture to mitigate the effects of climate change and to examine the possibility of integrating the climate change aspect into agricultural support programmes is also set out in the “Green Paper on Adapting to Climate Change in Europe” (Com 2007/354 fin).