Severe Drought and Extreme Weather Threaten European Agriculture

Extreme weather conditions including drought, heatwaves, and hail are causing significant damage to the agricultural sectors in Hungary and Italy. In Hungary, damage reports have covered more than 750,000 hectares, with losses expected to exceed those of the historical drought of 2022. The Hungarian government is providing immediate financial aid through a super advance of approximately 106 billion forints to 150,000 farmers and is requesting 16.7 million euros from the European Union crisis fund. Milk production is identified as one of the most affected areas in Hungary.

In Italy, the drought has impacted 60 percent of the territory. Estimates from Confagricoltura and Cia suggest damages could exceed 1.5 billion euros, while Coldiretti estimates the climate tax has already surpassed 3 billion euros. Production of rice, durum wheat, and fruit and vegetables has seen contractions ranging from 5 percent to 25 percent. Like Hungary, Italy reports that milk production is at risk. Additional pressures on Italian farmers include a 44 percent increase in fuel prices and a 9 percent increase in fertilizer costs linked to geopolitical instability in the Middle East.

While both regions face crisis, the framing of the response differs. A center leaning source focuses on the specific government interventions and the immediate disbursement of funds to farmers. A center right leaning source emphasizes the broader economic risks to national food sovereignty and the need for structural infrastructure investments over emergency management.