Europes drought and heat slash grain harvests, push food and energy prices higher

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9 days · 11 summary articles
Record heat and drought are squeezing Europe’s economy, with agriculture, energy and food prices bearing the brunt of the strain.
A study by Slovakia’s central bank found that each additional degree of summer heat costs Slovak firms an average of €70,000 in lost revenues and profits, with agriculture, construction and manufacturing the hardest hit . In Germany, the farmers’ association reported a 7 percent drop in grain harvests for 2026, totaling 41.9 million tons, as a dry spring and a June heatwave triggered premature ripening. Winter rapeseed output fell 20 percent, while winter wheat declined 7 percent to 20.9 million tons, according to the association’s president, Joachim Rukwied .
Austria’s agriculture sector has suffered around €1 billion in damages from what its hail insurance association called a “historic drought disaster,” with banks offering zero-interest loans to affected farms. Franz Sinabell, an agricultural economist at the Vienna Institute for Economic Research, said long-term aid must support adaptation to climate conditions . In France, vegetable growers in Auvergne reported successive heatwaves devastating crops, with some farmers warning that without better water access, certain produce may disappear from markets .
The economic ripple effects extend beyond farms. Velle Toll, a climate physics professor at the University of Tartu, said the current El Niño—already exceptional—will likely push up global food prices, particularly for tropical staples like coffee, cocoa, grains and sugar, as its warming of the tropical Pacific disrupts weather patterns worldwide. Estonia, though distant from the phenomenon’s epicenter, will feel indirect impacts through higher food costs and a potentially milder winter, Toll told Raadio 2 . In Switzerland, over 70 civil society groups launched the “No 50°C summers!” alliance, demanding immediate climate action, including fossil fuel phase-outs and heat-resistant building upgrades, as this summer’s drought signals a worsening trend .
Energy markets are also under pressure. Finnish electricity prices are expected to rise to an average of 9 cents per kilowatt-hour in September, up from last year, due to low Nordic hydropower reserves, Middle East conflicts and scheduled maintenance at the OL3 reactor, according to Pekka Salomaa, director of Finnish Energy . Germany’s network agency chief, Klaus Müller, warned households to expect higher gas bills as the Hormuz Strait closure prolongs supply constraints, though he ruled out shortages .
German farmers also face severe feed shortages, with silage maize yields collapsing and pastures failing to regrow after early cuts, potentially forcing livestock reductions, the German Farmers’ Association said . In Austria, fruit and vegetable growers anticipate losses of 33 percent and 45 percent, respectively, with eastern regions hit hardest by water shortages .
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3 further sources not geolocated





