European farmers could rely on state support, subsidies, and mechanisms that mitigated market fluctuations. Today, however, the situation is different—governments are withdrawing more and more, leaving farmers at the mercy of the global market. The price of wheat, corn, or soybeans no longer depends solely on yields but on stock market trends, financial speculation, and oil prices.
“In the past four years, it has become evident how exposed EU agricultural markets are to global forces without protection. Policymakers now have fewer tools to control major price fluctuations,” notes an analysis by the German Raiffeisen Cooperative Association.
Farmers once had a clear sense of what to expect—good years meant full granaries, while bad years were cushioned by reserves. Today, even when harvests are excellent, there is no guarantee of solid earnings. The issue is that prices fluctuate rapidly and unpredictably, and without clear protection mechanisms, producers are increasingly at risk of losses.
Weather conditions have always been an uncertain factor, but additional challenges now come into play—energy costs, climate change, and growing dependence on financial markets. “Agricultural commodities are becoming substitutes for fossil fuels, and oil prices are having an increasing impact on food prices,” the study’s authors point out.
With state protection mechanisms disappearing, one of the most commonly used tools is commodity trading in future markets. Through these, producers can secure prices in advance and shield themselves from major losses. However, this requires knowledge, experience, and access to financial instruments unavailable to everyone.
The question remains—has the state’s withdrawal been a wise move, or is it paving the way for the disappearance of small and medium-sized farms? Under such conditions, only the largest and best-prepared will survive. The rest, left without a clear safety net, are increasingly on the brink of collapse.
