Can European agriculture be simultaneously economic and environmentally friendly?
European agriculture is a significant part of the economy, but it also has a substantial environmental footprint. It faces the dual challenge of maintaining economic viability while ensuring environmental sustainability. Our main challenge is to find a balance between economic growth and environmental sustainability.
Economic viability
European agriculture is the mainstay of the continent's economy, contributing significantly to GDP and providing livelihoods for millions of people. The Common Agricultural Policy (CAP) has been instrumental in supporting farmers' incomes and ensuring food security. Introduced in 1962, CAP has evolved to address various challenges including market volatility, climate change and rural development.
Table : Economic Indicators of European Agriculture (2023)
In 2024, the total value added by the agricultural industry in the EU was estimated at €230 billion, contributing 1.3% to the EU's GDP. Despite fluctuations, agricultural income per unit of work has increased by 38% annually since 2015, reflecting the resilience and growth of the sector.
Technological advances have increased the competitiveness of European agriculture on the global stage. Precision farming, digital tools, and innovative practices have increased productivity and efficiency, allowing European farmers to compete in international markets. However, we must balance this economic success with the need to protect the environment.
Impact on the environment
Agriculture is the source of 11% of all greenhouse gas emissions in the EU and is a significant contributor to emissions of harmful air pollutants such as ammonia. Primary gases emitted from agricultural activities include methane (CH₄), nitrous oxide (N₂O), and carbon dioxide (CO₂). Understanding how these gases are produced in agricultural systems is crucial to developing strategies to mitigate their effects.
In addition, water pollution occurs when unplanned fertilizer and pesticide use in agriculture pollutes rivers and groundwater, resulting in algal blooms and dead zones. Intensive cultivation causes soil degradation, leading to nutrient loss and erosion.
Additionally, the use of artificial fertilizers and pesticides can lead to chemical pollution, which affects soil health, water quality, and human health.
Environmental sustainability
The European Green Deal aims to make Europe the first climate-neutral continent by 2050. This ambitious plan includes measures to reduce greenhouse gas emissions, promote biodiversity, and ensure sustainable food systems. The Farm to Fork Strategy, a key component of the Green Deal, focuses on creating a fair, healthy, and environmentally friendly food system.
Agriculture accounts for around 10% of the EU's total greenhouse gas emissions. The sector significantly affects biodiversity, water resources, and soil health. To address this challenge, the EU has launched several initiatives aimed at promoting sustainable agricultural practices.
Chart : Agricultural income in the EU (2015-2023)
This chart shows trends in agricultural income per unit of annual work from 2015 to 2023, highlighting 1-year fluctuations and overall growth.
The Farm to Fork Strategy aims to reduce the environmental and climate footprint of the EU food system. This includes targets to reduce the use of chemical pesticides by 50% and fertilizers by 20% by 2030. In addition, the strategy promotes organic farming, aiming to have at least 25% of the EU's agricultural land under organic farming by 2030.
Challenges and solutions
Balancing economic and environmental goals is one of the challenges in European agriculture. While costs are rising and profits are increasingly squeezed, European farmers are also feeling the pressure of a changing climate. 2023 is the year that the extremes of the climate emergency are clearly evident across the continent, as record-breaking droughts, wildfires, and irrigation restrictions become common across southern Europe. Agriculture is a major contributor to biodiversity loss, overuse of water, and greenhouse gas emissions.
However, it is increasingly agreed that there is an urgent need for transformative action to help conserve and restore European ecosystems. A key component of this work is to make agriculture more sustainable, both economically and environmentally.
Several initiatives aim to address environmental issues:
New Soil Act: This regulation aims to protect soil health, which is crucial for sustainable agriculture. Healthy soils are essential for food production, carbon sequestration, and biodiversity.
Genome-edited plants: These plant regulations aim to increase crop resilience and reduce environmental impact. Genome editing can help develop crops that are resistant to pests and diseases, reducing the need for chemical inputs.
Agroecology: Sustainable agricultural practices such as crop diversification, organic farming, and reduced tillage are being promoted to reduce the environmental footprint while maintaining productivity. Agronomy emphasizes working with natural processes to create resilient and productive agricultural systems.
Regenerative Agriculture: Regenerative agriculture focuses on restoring soil health, increasing biodiversity, and improving water retention. It goes beyond sustainable practices to actively counter environmental damage. In 2024, the regenerative agriculture market is estimated to reach a valuation of $4.36 billion with a compound annual growth rate (CAGR) of 15.6%. This approach not only improves environmental outcomes but also increases farm profitability. For example, regenerative farming can be up to 60% more profitable after six years due to lower input costs and higher yields.
Agro-ecological and regenerative practices focusing on crop diversification, organic farming, and reduced farming are on the rise. This approach helps to maintain soil health, increase biodiversity, and reduce the need for chemical inputs. Additionally, technological innovations such as precision farming and digital tools can optimize resource use and minimize environmental impact.
Conclusion
Balancing economic and environmental goals in European agriculture requires a multifaceted approach. Policy support, technological innovation, and sustainable agricultural practices are essential to achieving a sustainable and economically viable agricultural sector. By bringing these elements together, Europe can pave the way for a future where agriculture is economically strong and environmentally friendly.
The European Green Deal and Farm to Fork strategy provide a roadmap for achieving this balance. However, success will depend on the commitment of all stakeholders, including policymakers, farmers, researchers, and consumers. By working together, it is possible to create a sustainable and prosperous agricultural sector that benefits both people and the planet.