Abstract: The Ricardian model has been employed frequently to study the impact of climate change on European agriculture. This paper contributes to this literature by using a panel data of FADN EU regions and the period 2004-2012 and by taking into account both individual heterogeneity as well as spatial autocorrelation among EU regions. We tested three hypotheses related to the degree days model. Our results show that climate outside the defined growing season matters for European agriculture, and excluding it could underestimate climate change impacts. Our results should support public policy decisions about efficient and effective mitigation and adaptation policy measures in EU agriculture.