At the farm level, the effects of rising climate risks are smaller and adaptation potentials greater than at the level of individual crops (Lehmann et al. 2013b). Diversity plays a decisive role here. A broad base of different varieties, crops and income branches often buffers the effects of extreme events (Finger and Buchmann 2015, Di Falco and Chavas 2006, Lehmann et al. 2013b). At the farm level, building reserve capacities or taking up non-agricultural activities can also help to reduce income fluctuations (Briner et al. 2015). If these adaptation potentials are neglected, negative effects of climate change on yields, but also on income, are overestimated (Challinor et al. 2014). Nevertheless, many adaptation measures are associated with costs, either directly, e.g. for the installation of an irrigation system, or indirectly, as so-called opportunity costs. (...)In addition to dealing with increasing risks on the farm, insurance will play an increasingly important role. This is particularly useful if risks threatening the company's existence are covered. Insurance policies allow entrepreneurial risks to be taken and make investments more attractive. They therefore strengthen a productive agriculture and reduce the need for state intervention in the event of extreme climatic events.


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