Press Release: Risk and crisis management in agriculture: Commission invites Council to debate options

The European Commission on 9 March 2005 adopted a Communication that reported on risk and crisis management tools available in the Member States and at EU level. The document also looked at possible new measures to help farmers in the European Union manage risk and to provide an improved response to crises in the agricultural sector. Three options - agricultural insurance, mutual funds and an income crisis tool - were presented for discussion. Recent reforms to the Common Agricultural Policy (CAP) encouraged European farmers to be more market orientated. However, crises caused by natural disasters, livestock diseases or plant pests, or economic circumstances, may endanger a farm's viability or even affect the economic stability of an entire rural area.