Farming faces significant economic challenges, with issues such as price volatility, rising input costs, and increasing competition from global markets, all contributing to a complex environment for European farmers. Additionally, the increased frequency and intensity of extreme weather events are already negatively impacting agricultural production. These challenges are particularly acute for smaller farms and farmers in economically disadvantaged or geographically challenging regions.

The Common Agricultural Policy (CAP) provides several mechanisms for risk prevention and risk management with a focus on supporting farmers to build up resilience by mitigating the impacts of crises and being able to better respond to these challenges, including through direct payments, productive and non-productive investments, and risk management tools.

This Thematic Group will explore various issues associated with the economic vulnerability of farming, including risk management. Members will also consider how challenges can be overcome by farm businesses, e.g. through new ways of working, the application of risk management tools, and the use of income support tools. The group will also consider how the CAP currently addresses, or could better address, economic vulnerabilities.

The second meeting aimed to: