State compensation remains a measure of last resort in years marked by extreme climatic events. According to the Ministry of Agriculture and Rural Development (MADR), significant funds were allocated between 2020 and 2024 to compensate losses caused by drought, but interventions were sporadic and constrained by budgetary limitations.

From an economic perspective, public compensation plays a limited role. Payments are made with delays and cannot be anticipated in a farm’s financial planning. Data from the Court of Accounts indicate significant gaps between declared losses and amounts actually paid, which reduces the effectiveness of this instrument.

Another critical issue is the uniform nature of compensation schemes. They do not take into account the cost structure of individual farms or the level of investments already made. As a result, well-capitalized farms and vulnerable ones receive similar treatment, without reducing systemic risk.

Looking ahead to 2026, state intervention remains necessary but insufficient. Genuine protection against climate risk requires a mix of instruments: functional insurance schemes, adaptive investments, and farms’ own financial reserves. Without this combination, climate risk will continue to be a major source of economic instability in agriculture.

(Photo: Freepik)