EU Reveals 2040 Agricultural Strategy, Bold Initiative to Enhance European Agriculture

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On February 18, the European Union (EU) unveiled its “Vision for Agriculture and Food,” an ambitious roadmap aimed at enhancing the resilience and international competitiveness of the European agricultural sector.

The development of this plan resulted from an extensive eight-month consultation process involving 29 stakeholders, including farmers’ unions, industry representatives, and environmental groups. This inclusive dialogue sought to identify the pressing concerns and aspirations of Europeans across the agricultural supply chain. The outcome, presented last week, encompasses a comprehensive set of measures designed to rejuvenate EU farming, eliminate burdensome regulations, and bolster the competitiveness of the bloc’s agricultural exports.

The vision is anchored around four principal objectives: improving farmers’ living conditions, fortifying the agricultural sector against global shocks and competition, fostering “future-proof” sustainable agriculture, and aligning the sector with the needs of the EU population and its rural communities. Central to this initiative is the emphasis on innovation and technology as catalysts for growth, with plans to integrate artificial intelligence (AI) for farming data analysis and to promote the EU as a frontrunner in the bioeconomy through a detailed strategy set to be published later this year.

Supporting Agriculture from the Bottom Up

Key strategies include the adoption of biopesticides, genome editing, and biotechnologies, which are anticipated to yield immediate benefits by enhancing production and positioning the EU as a global leader in innovative agriculture. To address the excessive bureaucracy that has long hindered the agri-food sector, the EU plans to reorganize administrative processes, allocating more funding to agencies like the European Food Safety Authority to expedite certification procedures. The vision promises “an unprecedented simplification effort,” aiming to facilitate compliance with EU standards and ease entry into the agricultural industry.

The initiative also comprises various sustainability initiatives designed to promote environmentally friendly practices among agri-businesses without imposing additional regulations that could further squeeze profit margins. Instead, the responsibility for environmental burdens will be more equitably distributed across the supply chain, with farmers receiving additional optional support from the EU to mitigate their environmental impacts. A notable example is the establishment of an “On-farm Sustainability Compass,” a centralized platform for environmental reporting aimed at simplifying compliance and enabling agri-businesses to track and enhance their environmental performance.

This emphasis on sustainability as a supportive measure, rather than a constraint, comes in response to growing criticism that EU sustainability policies have contributed to the region’s economic stagnation. On February 26, the EU announced a “simplification omnibus,” as industrial groups from France and Germany expressed concerns that stringent environmental regulations were complicating operations and hampering competitiveness.

Among the proposed changes are reductions in carbon reporting requirements for large firms, excluding 80% of those initially affected, as well as adjustments to the Carbon Border Adjustment Mechanism. The Corporate Sustainability Due Diligence Directive, which aimed to hold companies accountable for Environmental, Social, and Governance (ESG) violations throughout their supply chains, will also undergo significant revisions following complaints from the United States. The inclusion of ambitious sustainability goals in the EU’s Agriculture Vision underscores the bloc’s commitment to climate action, while also indicating a shift towards a more pragmatic approach that encourages businesses to adopt sustainable practices without imposing excessive regulations.

Trade and Sustainability Take the Stage

Another critical dimension of the plan is the EU’s intent to enhance domestic competitiveness and regulate imports more effectively. The Vision outlines strategies to “assertively promote and defend strategically the exports of EU products,” thereby reducing reliance on foreign sources and enhancing self-sufficiency. Furthermore, EU trading partners will only benefit from trade facilitation measures, such as prelisting—allowing pre-approval of importers to bypass border inspections—if they reciprocate similar measures for EU exports.

The Vision also commits to strengthening “agri-food economic diplomacy” and banning imported products containing hazardous pesticides that are prohibited within the EU, alongside the potential cessation of imports of banned pesticides and chemicals. Additionally, the plan proposes “a powerful enhancement of [imports] controls on the ground” to protect domestic production and prevent the entry of hazardous or unfairly produced goods into the EU market.

A Dwindling Crucial Industry

In the face of global trade uncertainties exacerbated by recent conflicts and unpredictable tariff policies, the EU agriculture sector is urgently seeking protective measures. EU farming has grappled with numerous challenges, including stringent regulations, low profit margins, and competition from cheaper imports, leading to a concerning trend: by 2025, only 12% of EU farmers will be under the age of 40, with few new entrants joining the field.

Politically, agriculture remains a contentious issue across the EU, as it forms a vital part of the region’s cultural identity. However, an increasing number of farmers are exiting the industry, often replaced by multinational corporations or pushed out entirely. Strengthening the European food supply has been identified as a fundamental goal for regional security and is vital for rejuvenating the stagnant EU economy, which saw its agricultural sector generate over €900 billion in 2022, accounting for 15% of total EU employment.

Globally, shifts within the EU food supply chain are likely to reverberate across nearly every agricultural sector. The EU stands as the world’s largest agri-food exporter, with a steadily increasing trade surplus that reached €70 billion in 2023. Changes in EU regulations, import controls, and export restrictions are poised to have significant implications for food supply and production on a global scale.

A Pivotal Step for the EU’s Future

The Vision represents a strong commitment to addressing industry challenges and fortifying the agricultural sector from the ground up. However, skepticism remains among some stakeholders. Environmental advocates have criticized the plan for failing to adequately address the detrimental impacts of meat consumption on climate change, arguing that it disproportionately favors livestock farmers. As discussions surrounding the EU’s Common Agricultural Policy continue, the Vision does not provide a clear direction for the reformed policy, which many advocate should prioritize newcomers and young farmers rather than perpetuating the existing subsidy framework.

More critically, the plan emerges at a time of existential importance for the EU, as the bloc grapples with its security, independence, and long-term objectives. With the United States moving closer to Russia in efforts to resolve the Ukraine conflict, the EU has proposed the integration of Ukraine into the bloc, reflecting a desire to distance itself from U.S. foreign policy and enhance its strength and size. The EU is also pursuing greater independence from allies, as evidenced by increased defense spending and collaborative initiatives with the UK, along with the recent decision by Estonia, Latvia, and Lithuania to join the EU power grid and detach from Russian electricity dependencies.

The sentiments expressed in recent German elections suggest that EU citizens desire a strong, prosperous, and self-sufficient union. To achieve this objective, revitalizing the fundamental building blocks of any economy, particularly the food industry, is essential. “The Vision is our resolute response to the agri-food sector’s call for action—shaping a future that is competitive, resilient, fair and attractive for generations to come,” stated Raffaele Fitto, Executive Vice-President for Cohesion and Reforms and leader of the Vision’s development team. The strategies articulated in this plan are ambitious and could prove crucial to revitalizing the EU’s troubled agricultural sector; however, the ability of EU bureaucracy to translate these lofty aspirations into tangible action remains to be seen.