The main objective was to assess the risk of farmers in the European Union and to analyze the impact of agricultural policy changes on the main components of income namely price and production risks. In order to achieve this, qualitative considerations and quantitative analyses covering the period 2004 – 2018 have been made. Future policy scenarios have been defined, taking into account likely Common Agricultural Policy developments, including possible outcomes of the Doha round of the WTO negotiations. Subsequently, the economic impact of policy scenarios in conjunction with a set of prospective risk management instruments for the European Union are determined.