[Fonte: Farm Europe]

Posted on




Farmers’ incomes, productivity and investment

  • The agriculture sector is facing severe headwinds. Farmers’ incomes have stagnated, and according to the European Commission forecasts they are bound to drop by a staggering 14% (in real terms) in the next decade, taking into account the European Commission initial Common Agriculture Policy reform proposals.
  • Productivity is also on the way down, by 10% on capital and input productivity; only labour productivity is increasing as a result of lower employment in agriculture.
  • The sector faces increased international competition and without significant productivity gains exports of agri-food products will suffer.
  • One of the key problems is lack of investment, in particular on investment that boost productivity and leads to increased farmers’ incomes; on top of that the adoption of new technologies is slow, and the EU is lagging behind its main competitors in smart and precision farming, using digital and other new technologies, which reduce the environmental footprint whilst increasing productivity and incomes.
  • The new Common Agriculture policy should be an opportunity to support farmers willing to make the transition towards smart agriculture, by providing incentives to invest in smart farming in both pillars: in the “eco-scheme” chapter of the first pillar, and devoting a wring fenced share of the second pillar to support these double-performance new type of investments.

The resilience of the sector to cope with market and climatic crisis

  • Agriculture faces a repetition of crisis, including sustained very low prices, high volatility and extreme climatic events, but the Common Agriculture Policy is not adequately tooled to provide adequate responses and increase the resilience of the sector.
  • To build on the recent progress made to support income stabilization tools and climatic insurance, the new Common Agriculture Policy should integrate a new Crisis Fund with a two-fold mission: to quickly finance, in the event of a crisis, exceptional market measures and intervention measures, as well as to automatically take over risk management measures of the income stabilization tools, as soon as indicators have reached pre-defined thresholds.
  • The new Crisis Fund should replace the current reserve fund, which is not really operational, building on its 400 million euros allocation to reach 1.5 billion euros (either by a single initial financial allocation or by recourse to annually un-used and recovered funds).
Comente este artigo

O artigo AGRICULTURE ECONOMIC CHALLENGES foi publicado originalmente em Farm Europe.

Anterior Concelho de Mangualde vai ter Bolsa de Terras
Próximo Previsão trimestral 2019-> Setembro Outubro Novembro

Artigos relacionados


‘Poor returns see tillage farmers struggle to hold on to Basic Payments in 2016’

Elatus Era, a new SDHI fungicide from Syngenta, based on the novel active ingredient Solantenol in co-formulation…

Comente este artigo
#wpdevar_comment_4 span,#wpdevar_comment_4 iframe{width:100% !important;} […]


Presença da Hubel Verde na Agroglobal fortemente marcada pela inovação e execução de ensaios

03 de Setembro de 2018
A Hubel Verde irá marcar presença na Agroglobal, pela 5ª edição consecutiva, que se realiza nos dias 5, […]


Vinos-refresco, frizzantes o wine mojito a la caza del consumidor millennial

Las bodegas innovan bebidas de cara al verano

El mundo del vino vive una auténtica “catarsis”, con el lanzamiento de nuevas propuestas desenfadadas y frescas que se aproximan a la categoría de los refrescos, […]