Future changes in the weather, climate and climate variability could alter growing and production conditions in the agricultural sector and consequently affect food production negatively if technologies and farming practices are not adapted in anticipation of regional climate change impacts. The severity of climate and weather impacts on agriculture, however, highly depends on the vulnerability of farming activities and technologies as well as on the adaptation capacities of regions and farms. Although climate change impacts have been studied extensively, the net impact of climate change on northern latitudes is yet unclear. The objective of this thesis is to evaluate the potential impacts of climate change on European agriculture. For this purpose, a novel and unique 20-year panel of 80,000 agricultural holdings represented in all the 27 EU member states is constructed, by pairing the farm data with a gridded weather and soil dataset. In a first step (Chapter 2-4), the impacts of climate and weather variability on production, as well as the financial and the operational performance of farms are assessed and efficient adaptation strategies are derived at a farm-level. These chapters are based on a set of econometric analyses and identify the most vulnerable regions in the European Union by investigating short-term to medium-term impacts of climate change - a time frame in which adaptation is limited. In a second step (Chapter 5), long-term climate change impacts on adapted production technologies are projected using a partial equilibrium model considering world market and policy adjustments. These simulations can assist in building more effective and efficient policy frameworks to support efficient adaptation of European farms in the long-run. Following a brief literature review, the second chapter quantifies regional weather impacts on 45,000 irrigated and rainfed cereal farms using a production function approach and dynamic panel methods, which makes the consideration of agricultural input adjustments feasible. Subsequently, the sensitivity of yields is evaluated using temperature and precipitation averages for 2021-2050 and 2071-2100 obtained from the regional climate model REMO. The analyses reveal that southern and central European cereal farms are highly vulnerable to temperature and rainfall changes (e.g. a yield decrease by up to 55%), whereas Northern Europe is more likely to benefit from a long-term warming. Overall, net cereal yields could decrease by 19% without efficient adaptation in the A2 scenario by 2100. This could have serious long-term consequences for the cereal production (e.g. shift of the production to Northern Europe). The third chapter introduces a novel Ricardian approach to project potential climate change impacts on the welfare of European farmers. Using a 20-year panel of 1000 NUTS regions in the EU-12, three Ricardian models are estimated applying spatial and aspatial cross-sectional methods and a novel long differences approach, which exploits long-run temperature and precipitation trends and reduces inter-annual fluctuations in land values. The long differences approach suggests that maximum gains occur at a temperature of 0.76°C higher than in the cross-sectional models. In the A2 scenario, this would result in a net reduction of land value of 17% for the long-differences approach but up to 64% for the cross-sectional models. Even though the novel approach suggests that climate damages could be significantly lower than expected, it also indicates a considerable influence of short-term variability on welfare. Both methods show that most losses are concentrated in southern Europe (-84% to -92%) despite the significant differences between the approaches. The fourth chapter investigates the impact of climate change on the operational performance of farms and potential response strategies by empirically assessing (i) the impacts of climate variability on efficiency and (ii) options for adaptation. For this purpose, an output-oriented distance function for more than 100,000 farms in 12 EU member states is estimated. The inefficiency term is explicitly modelled as a function of farm characteristics and climate variability as a proxy for climate-related experience of farmers. The results suggest that a lack of climate-related experience reduces the efficiency significantly, confirming the hypothesis that temperature variability can also affect the production indirectly. A sensitivity analysis suggests that by 2100, the average efficiency level in the EU-12 could be reduced by 28% in the A2 scenario, whereas the efficiency level could drop by up to 50% in the Mediterranean regions. The results also indicate that adaptation through input adjustments (e.g. increased fertiliser) or crop choice (e.g. higher share of fruits) is possible to a certain degree, but a drop in the efficiency could additionally reduce productivity. The last chapter integrates the statistical results into a partial equilibrium model to assess the value and effectiveness of farm-level (e.g. irrigation, crop portfolio, cropland expansion) and macro-economic adaptation strategies (e.g. trade liberalisation) on crop production in Europe. The results suggest that farm-level adaptation, especially cropland expansion and crop portfolio adjustments, can largely mitigate negative impacts of climate change on regional crop production. The results further demonstrate that on the one hand crop production is significantly reduced by large-scale bioenergy policies because of resources shifting from crop production to bioenergy production, which can make large-scale adaptation necessary (i.e. cropland expansion), and on the other hand, that trade can play a moderating role by allowing for virtual land import which reduces domestic land use competition and pressure for extensive adaptation. Overall, the results stress the importance of linking trade, adaptation and bioenergy in climate impact assessments because of the interdependencies between farm and policy decisions and agricultural production and their influence on the value of adaptation.