Economic vulnerability of farming: key insights
- CAP Implementation
- Jobs, Growth and Equality in Rural Areas
- Climate and Climate Change
- Sustainability
A recent Thematic Group has looked into experiences, policies and potential support mechanisms to improve farm resilience and economic sustainability.
Economic vulnerability remains a key concern for many farming sectors across the EU, particularly for small-scale farms and those in disadvantaged or remote areas. Despite the range of tools and support offered through the Common Agricultural Policy (CAP), such as direct payments, rural development measures, and risk management instruments, many farmers continue to face persistent economic challenges linked to price volatility, input costs, market access, and climate impacts.
The EU CAP Network’s Thematic Group (TG) on Economic Vulnerability of Farming brought together a committed group of experts and stakeholders from across the EU to explore how CAP interventions can more effectively address economic vulnerability in farming. The group aimed to identify what lessons can be learned from the current approaches, and how policies and support mechanisms can be better tailored to improve farm resilience and economic sustainability.
Between January and April 2025, TG members co-created proposals to address economic vulnerability in farming, and produced a members' report summarising in detail issues identified, how challenges can be overcome by farm businesses, and how the CAP currently addresses, or could better address, economic vulnerabilities. The main proposals include:
- diversify to thrive: strengthening farm resilience and income through tailored support;
- reducing farm income vulnerability by enhancing participation in risk management tools through lower transaction costs;
- Erasmus-style approach for education: sharing good practices and business solutions; and
- targeted strategies to address financial, digital and bureaucratic barriers through the creation of a dialogue forum.
The TG also developed a compendium showcasing inspiring examples that address the economic vulnerability of farm businesses across the EU. These examples, provided by TG members from a wide range of sectors, highlight the importance of coordinated action involving National Authorities, insurance providers, farming organisations, and individual farmers. The initiatives in the compendium are supported through various mechanisms and include direct economic support and risk mitigation strategies as well as innovative approaches to enhance resilience.
All the outputs of the Thematic Group on Economic Vulnerability of Farming, including the members' report, the compendium and the reports of the two TG meetings, are available on the TG landing page. Here you can also find useful background documents and links to other relevant resources available on the EU CAP Network's website.
The work of this TG will feed into the work of the new Thematic Group on Unlocking the Potential of Cooperation, which will kick off in September. To stay up-to-date, follow @EUCAPNetwork and #Cooperation on social media.
