European consumers are in the privileged position to enjoy a unique balance of food quantity, quality and diversity. The last two years have proven that the European agricultural system is resilient enough to ensure, during the Covid-19 pandemic, a steady supply of safe and nutritious food for Europeans, thanks to the hard work of our farmers but also to high levels of agricultural mechanisation.
Overall, 25% more agricultural tractors were registered across Europe in the first six months of 2021 compared to the first semester of 2020, badly hit by the pandemic. For manufacturers, Covid-19 production and distribution constraints gradually improved in 2021 but did not come back to normal. Significant supply chain challenges remained, with new issues adding to ongoing problems as the world was recovering and competing for scarce supply. In June, CEMA warned that the sharp rise in commodity and raw material prices deeply impacted the European agricultural machinery industry, and so did semi-conductor shortages. The main uncertainty at present is to what extent the current high level of orders can be realized by the manufacturers against the backdrop of price increases and shortages on the supplier side.
The double challenge still remains to produce enough food whilst further protecting nature and safeguarding biodiversity. In line with evolving societal expectations, the European Commission (executive branch of the European Union institutions setup) proposed ambitious greening goals, and a push for more sustainable farming. The Commission issued a series of plans and strategies to achieve this goal, such as the European Green Deal, the Farm to Fork and Biodiversity strategies, the Zero pollution action plan… All of these have set very ambitious targets that will significantly impact agricultural practices for years to come. What we still lack is the means to measure and understand how the combination of all these objectives will affect European farmers. But for sure, none of these objectives can be achieved without mechanization, smart technologies and digital transformation.
To take-up that challenge, the agricultural machinery industry stands ready to provide the right technologies to support farmers of all farm types and sizes. The use of digital farming tools, modern farm machines, farm data management systems and agricultural robotics are outlined as part of the solution to advance sustainable farming.
To increase technology uptake, European policies, measures and support schemes need to be aligned. The reformed Common Agricultural Policy (CAP) can support investments in advanced farm machinery, precision farming technologies and digital solutions to help our farmers to stay competitive, while ensuring a generation renewal of farming activities. It is now up to the 27 EU Member States to make it happen, through well-crafted National Strategic Plans expected by the end of the year and effective eco-schemes to support new technology and investment. Earlier this year CEMA released a position paper highlighting how Precision Agriculture Technologies (PATs) can deliver an important contribution to sustainable farming practices under the new EU Eco-Schemes. The paper can be read here.
At CEMA, we are convinced that if we get the right balance and stimulus, advanced agricultural machinery and solutions can seed the future of sustainable farming for Europe.
