The EU and the UK risk falling further behind major agricultural competitors, including the US, Brazil, China, Canada and India, unless farmers gain faster access to technologies capable of addressing growing climate and productivity challenges.
This is one of the main conclusions of a new report commissioned by Bayer, combining economic analysis by Oxford Economics, a survey of more than 8,000 consumers and in-depth interviews with farmers across eight European markets.
The study identifies crop agriculture as a strategically important sector for food security and economic resilience. Crop production contributes €246 billion to EU GDP and €5.7 billion to UK GDP, while every €1 billion generated by crop agriculture supports almost €3 billion in downstream production across other sectors.
However, Europe’s agricultural output has grown considerably more slowly than that of other major markets. Between 2011 and 2023, crop output increased by an average of just 0.1% per year in the EU, compared with 1% in the US and 2% globally. Growth reached between 2% and 3% in China, Canada and India, while Brazil recorded average annual growth of 3.3%.
Climate pressure and rising production costs
The competitive gap is emerging against a backdrop of increasing input costs and growing climate-related risks. According to the study, climate-related pressures already generate estimated average annual losses of €17.4 billion, equivalent to 6.4% of EU crop production.
By 2050, these losses could rise to between €24.8 billion and €28.9 billion, further increasing pressure on farm productivity and resilience.
The report argues that European farmers are facing a double challenge: climate and geopolitical pressures are intensifying while access to new technologies can take longer than in competing agricultural markets.
According to Oxford Economics, access to modern seed technologies, crop protection solutions, digital tools and other innovations can help farmers respond to these challenges while strengthening the competitiveness and resilience of European agriculture.
“The EU and the UK are confronted with a widening resilience gap,” said Frank Terhorst, Head of Strategy & Sustainability for Bayer’s Crop Science Division. “To counter that, agriculture must be understood as a critical strategic sector for Europe’s autonomy and competitiveness.”
Regulation is limiting access to innovation
The research also highlights concerns among farmers about the shrinking range of crop protection tools available to them.
While more than 1,000 active ingredients were authorised in the EU in the early 2000s, around 420 remain approved today. Over the past seven years, farmers have lost access to 92 active ingredients, while only one new synthetic active ingredient has reached the European market during the same period.
The report also points to differences between the EU and UK regulatory approaches. Since 2022, the UK has approved four new active ingredients that remain unapproved or pending in the EU, while maintaining approval of 15 crop protection active ingredients whose EU licences have expired or been withdrawn since Brexit.
The study warns that the regulatory alignment currently under discussion between the UK and EU could affect some of these approvals if transitions are not managed carefully.
Against this backdrop, the report calls for a more predictable and proportionate regulatory framework that maintains safety and stewardship standards while allowing new technologies to reach farmers more efficiently. Lengthy approval procedures, increasing administrative requirements and slower adoption pathways are identified as barriers to innovation.
“An approval approach based on real-world risks and benefits instead of theoretical hazards can help ensure farmers gain access to proven innovations while maintaining Europe’s high safety standards,” Terhorst said.
Consumers support science-based agricultural innovation
The study also finds broad consumer support for agricultural innovation and a greater recognition of the strategic importance of food production.
Across Europe, 84% of consumers agree that food security is a matter of national security. The same proportion believes farmers should have access to the latest technologies and innovations to improve harvests and help reduce food prices.
Meanwhile, 77% believe that reducing bureaucracy and administrative burdens would help Europe produce enough food, while 63% say they would be more likely to vote for a political party that supports farmers using new science and technology.
“Europeans are more open to innovation and technology than many would assume,” said Matthias Berninger, Head of Public Affairs, Science, Sustainability & HSE at Bayer. “People see the connection between resilient farming, food security and affordable food.”
According to Berninger, Europe has the scientific expertise, farmers, soils and industrial capabilities needed to strengthen its agricultural resilience, but these advantages need to be translated into greater competitiveness.
The report concludes that faster access to innovation will be essential if European agriculture is to maintain productivity, strengthen food security and remain competitive in an increasingly challenging global environment.
