The combination of extreme weather and economic instability has heightened awareness of the need to strengthen farm-level preparedness and resilience, as well as to develop long-term sustainable strategies that enhance Sweden’s readiness and food security. This project investigates environmental, economic, and social perspectives in an integrated manner.
We contribute with empirical analyses of how Swedish agricultural businesses are economically affected by simultaneous climate- and economy-related shocks. We examine which production methods have the potential to improve profitability, productivity, and resilience to extreme weather and inflation. We quantify the economic effects of droughts and other extreme weather events on profitability, productivity, and resource efficiency over the short, medium, and long term.
Moreover, we study how increased risk and uncertainty influence firms’ willingness to collaborate and adopt new production methods and technologies. The project also develops strategies to enhance resilience to extreme weather and promote the adoption of resource-efficient and profitable production systems.
We use detailed register data at both the firm and field level (2001–2023), linking economic, agronomic, and meteorological information.
The Economic Potential of Agricultural Production in Times of Severe Climatic and Economic Disruptions
In recent years, agricultural entrepreneurs have faced severe weather events and economic disruptions that have caused significant financial and environmental damage. In addition to extreme droughts—such as in Northern Europe in 2018 and more recently in early summer 2023—unexpected events like the Covid-19 pandemic and inflation linked to geopolitical disturbances have created deep uncertainty.
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