Climate change not only affects weather conditions, patterns, and the frequency and severity of extreme weather events but also changes how governments spend money. Agriculture is an important sector of the European Union (EU), and it is projected to decrease by 16% by 2050, therefore a third of the EU budget has been spent on agricultural funding, adaptation, and climate action. The effect of climate change on agriculture is mixed and dependent on the country and its location. The southern EU is adversely affected while the northern EU is positively affected by the changes in weather patterns. The main goal of this paper is to gain insight regarding the effect that climate change has on public spending in relation to the agricultural sector of the EU, by using the pooled OLS and GMM methods. The study concluded that agriculture has a significant impact on public spending in the southern countries of the EU, where it represents a significant portion of the GDP. Inflation influences public spending in the whole EU region, the northern and southern countries of the EU. Rain has a moderately significant impact on public spending in the whole EU region. It is advised that governments maintain a controllable level of inflation using fiscal and monetary policy that will implicitly control public spending.