- Advances in Agriculture
Europe’s agricultural resilience: Why innovation matters
Crop agriculture contributes greatly to Europe’s food security, its economy and wider agrifood value chain. Research prepared by Oxford Economics examines the pressures facing the sector and how access to innovation helps strengthen competitiveness and resilience.
is the estimated cost to bring a new active ingredient to the EU, compared to $14 million in the US
in the last seven years, while only one new synthetic active ingredient reached the market over the same period.
primarily in rural areas, still faced poor internet access, limiting their ability to adopt digital agricultural technologies
Crop agriculture supports Europe’s food system, rural economies, and wider industrial value chains. According to the Oxford Economics report commissioned by Bayer, crop production in the EU was valued at approximately €276 billion in 2025 and accounted for 50.9% of total agricultural output. The sector directly employed 4.5 million people in 2023, representing just over 2% of total EU employment.
The sector’s importance extends well beyond the farm. The report estimates that 87% of the economic activity and 89% of employment stimulated along the EU crop-agriculture supply chain take place within the EU. Crop agriculture provides essential inputs for food processing, logistics, distribution, livestock production and other industries, connecting farm-level production with the wider European economy.
Agricultural productivity in the EU has lagged behind several comparator markets over the past three decades. In the last decade, average annual crop production growth was estimated at only 0.1% in the EU. In the UK, growth was even lower, at 0.0 percent. This compares with 1 percent in the US, a global average of 2 percent, and between 2 and 3 percent in China, Canada and India. Brazil was among the fastest-growing markets, with annual growth averaging 3.3 percent over the period.
Between 2011 and 2023, the average EU crop output was only 2% higher than in the previous decade. Over the same comparison period, production increased by 16% in the United States, 44% in Canada and 51% in Brazil.
Keeping pace with scientific progress
Europe has a strong scientific base, skilled farmers, and a long tradition of agricultural innovation. Turning this capability into global competitiveness depends on whether innovation can reach farms at the pace required by changing conditions.
While innovation has been developing quickly around the world, only 46% of European farmers reported using at least one agricultural technology, compared with 74% in the United States and 53% in Brazil.
According to Oxford Economics, better access to modern technologies can support farmers in addressing the significant climate and geopolitical challenges, strengthening the agricultural sector’s competitiveness and resilience.
Agriculture should be high on Europe’s competitiveness agenda
The future competitiveness of Europe will be shaped by the sectors that support its economic strength and capacity to navigate climate pressures, market volatility, and geopolitical uncertainty. Agriculture is one of them.
Europe’s farmers are already adapting to a changing world. Ensuring they can access the innovation they need is an important part of enabling them to keep delivering for Europe.
Source: Economic analysis by Oxford Economics. The findings, estimations and projections reflect the methodology, assumptions and sources set out in the full report. Figures and timelines should be read as of October 2026.