How to improve risk management 

 
 

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Risk management tools would be placed under CAP Pillar 2 (rural development budget) and would thus be subject to co-financing by member states. They should include financial contributions to premiums for crop, animal and plant insurance and also mutual funds to pay compensation to farmers in the event of economic losses caused by adverse climatic events, animal and plant diseases or pest infestation.

The three institutions also agreed to create an income stabilisation tool, to take the form of financial contributions to mutual funds to compensate farmers in the event of a severe drop in their income. By the end of 2018, the Commission should carry out an assessment of the risk management tools and table a legislative proposal, if necessary, to improve their implementation.