Austria agriculture faces drought damage and export challenges

Austria’s agricultural sector is grappling with the dual impact of extreme weather and economic pressures. A record-breaking drought, characterized by the hottest summer and driest spring on record, has caused an estimated 1 billion euro in total damages to the agricultural industry. The Hagelversicherung insurance provider has already paid out 375 million euros in compensation to farmers, with an additional 25 million euros expected by late November.

In the Styria region alone, drought, frost, and hail caused 183 million euros in damages, with 140 million euros attributed specifically to extreme dryness. Crop yields have suffered significantly, including a 70 percent loss in grassland, a 25 percent drop in corn, and substantial losses in apples and soy.

On the economic front, Austria’s agricultural exports remained stable in the first half of 2026, reaching 8.73 billion euros. While beef, poultry, and apples saw value increases, the processed food industry faced a decline. Export volumes for processed foods fell by 5.1 percent, driven by high personnel and energy costs that make Austrian manufacturers less competitive internationally.