THE IMPACT OF CLIMATE CHANGE ON THE PROCUREMENT PROCESS OF AGRICULTURAL EQUIPMENT IN THE EUROPEAN UNION

The impact of climate change has recently increasingly affected the process of purchasing agricultural equipment in the European Union. Using a mixed-methods approach, the study integrates regional climate data (SPEI index, precipitation deviations), survey-based measures of farmers’ risk perception, and economic variables such as access to financing and input prices. The analysis employs PLS-SEM and multilevel modeling to capture both individual and regional effects. Results reveal that perceived climate risk significantly increases purchase intention for agricultural machinery (β=0.42, p<0.001), with green financing acting as a mediator and brand reputation as a moderator. The findings highlight the importance of brand equity and service ecosystems in mitigating uncertainty and accelerating technology adoption. Managerial implications include the need for manufacturers and policymakers to collaborate in promoting resilient, climate-smart agriculture through targeted incentives and accessible green financing. The study contributes to the literature by integrating climate risk into models of purchasing behavior and offers insights for public policies supporting the green transition in agriculture.