1. Moldova has experienced increasing natural hazards like droughts and floods that have severely impacted rural livelihoods dependent on agriculture. The 2007 drought caused estimated losses of $1.2 billion and devastated small independent farmers. 2. A new early warning system is needed to help rural communities adapt to climate change through policies supporting improved irrigation, crop varieties, and diversification of rural economies. 3. Soaring food prices following the drought and 2008 financial crisis have heightened food insecurity, especially for the over 70% of the poor living in rural areas dependent on subsistence agriculture. Financial uncertainty continues from declining cereal prices and rising costs of food and commodities.