This research measures the economic benefits that European farmers gain from climate adaptation. A structural Ricardian model of farm type choice and conditional income is estimated using data on climate, soil, geography and regional socio-economic characteristics for 23452 individual farms across Western Europe. The results show that these choices and the resulting incomes across farm types are highly sensitive to climate. As climate is forecasted to change in the future, farmers are predicted to shift away from crops and often fruit towards sheep and goats across Western Europe. The results are predicted to be the strongest in southern Europe and the United Kingdom. Changing farm type is an important adaptation measure and can reduce the damages from climate change with 50%.