The EU and the UK risk falling further behind agricultural competitors such as the US, Brazil, China, Canada and India unless farmers gain faster access to innovation capable of addressing growing climate and productivity pressures. A more proportionate regulatory framework and greater openness to new technologies could help reverse this trend. These are the main conclusions of a report commissioned by Bayer, combining economic analysis by Oxford Economics, a representative survey of more than 8,000 consumers and in-depth interviews with farmers across eight European markets, including Spain.
The study identifies agriculture as a strategic sector for food security, contributing €246 billion to EU GDP. However, between 2011 and 2023, EU agricultural output grew by an average of just 0.1% per year, compared with 1% in the US, 2% globally and between 2% and 3% in China, Canada and India. Brazil was among the fastest-growing markets, with annual growth of 3.3%. Over the longer term, average EU production was only 2% higher than in the previous decade, compared with increases of 16% in the US, 44% in Canada and 51% in Brazil.
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These pressures are compounded by rising production costs and the growing impact of climate change. Climate-related risks are already estimated to cause average annual losses of €17.4 billion, equivalent to 6.4% of EU agricultural output. By 2050, these losses could reach between €24.8 billion and €28.9 billion. The report identifies a growing risk as pressures on farmers intensify while innovations take longer to reach the field. According to Oxford Economics, better access to modern technologies could help farmers address climate and geopolitical challenges while strengthening the sector’s competitiveness and resilience.
“The EU and the UK are confronted with a widening resilience gap. To counter that, agriculture must be understood as a critical strategic sector for Europe’s autonomy and competitiveness,” says Frank Terhorst, Head of Strategy & Sustainability for Bayer’s Crop Science Division. “It is critical to embrace innovation as an opportunity rather than a risk to be managed. Europe has the capabilities to lead, but we need to ensure that enough solutions are available to farmers and that innovation can reach the field faster.”
Regulatory barriers to agricultural innovation
The report argues that farmers need access to a broader range of solutions, including innovative seeds, crop protection products, precision agriculture, automation and artificial intelligence. Bayer has recently announced a new phase of innovation launches, including seed and trait solutions, genome editing and the AI-enabled discovery of new modes of action for crop protection. However, their availability to farmers depends largely on regulatory frameworks.
The agricultural toolbox is becoming increasingly constrained. More than 1,000 active ingredients were authorised in the EU in the early 2000s, compared with around 420 today. According to CropLife Europe, cited in the report, farmers have lost access to 92 active ingredients over the past seven years, while only one new conventional crop protection active ingredient has reached the market.
The study therefore calls for a more predictable and proportionate regulatory environment that supports innovation without compromising Europe’s high safety standards. Lengthy approval procedures and an increasing administrative burden are identified among the factors limiting access to new technologies.
“An approval approach based on real-world risks and benefits rather than theoretical hazards can help ensure farmers gain access to proven innovations while maintaining Europe’s high safety standards,” Terhorst adds. “We invest heavily in these solutions and want European farmers to benefit from them in the same way as their counterparts elsewhere in the world.”
Consumers support science-based innovation
Across Europe, 84% of consumers agree that food security is a matter of national security, while another 84% believe farmers should have access to the latest technologies so that innovation reaches the field faster, harvests improve and food prices fall.
Support for innovation is particularly strong in Spain, where 72% of consumers favour the use of AI in agriculture, the highest level among the European markets analysed.
“Europeans are more open to innovation and technology than many assume. People see the connection between resilient farming, food security and affordable food,” says Matthias Berninger, Head of Public Affairs, Science, Sustainability & HSE at Bayer. “The findings are a call to action for political, business and civil-society leaders. Europe must move from a culture of risk avoidance to one of innovation, and this summer’s decision on New Genomic Techniques is an example of that.”
The study also finds that 77% of consumers believe cutting bureaucracy 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 technologies.
