Insurance is only one component of risk management. According to analyses by the European Commission and the JRC, resilient farms combine multiple instruments: crop diversification, adapted rotations, and the use of climate monitoring technologies.

Diversification reduces exposure to total losses in an unfavorable agricultural year. Eurostat data indicate that farms with a diversified production structure have lower income volatility compared to those strictly specialized in a single crop.

Technology plays an increasingly important role. Efficient irrigation systems, precision agriculture, and weather data monitoring can limit the impact of extreme events. However, these solutions require investment and rigorous financial planning.

For 2026, climate risk management is becoming a strategic element of the agricultural business model. From an economic perspective, resilience is not built through a single instrument, but through a balanced combination of financial protection, technological adaptation, and operational discipline.

(Photo: Freepik)