B-R6: Transitioning to sustainable and resilient farming systems in Europe

European farmers are under increasing pressure. Climate change, loss of
biodiversity, input dependencies and low profitability constitute critical
growing threats to farmers and European food production. Decades of ecologically
and economically unsustainable agricultural policy in the EU have not only
failed to build resilience to shocks but have also exacerbated the threats from
ecosystem degradation and failed to address the decline in farmers’ economic
resilience, resulting from high input dependencies and large power asymmetries
in food value chains.

Europe has seen a steep decline in its number of farms and farmers. Between 2005
and 2020, it lost 37%, corresponding to 5.3 million farms. The largest subsidy
scheme, the area-based direct payments, continues to favour the largest farms,
with 20% of beneficiaries receiving 80% of the payments. These untargeted
payments contribute to locking farmers into a size rationalisation that both
promotes and forces the unsustainable expansion of production and specialisation
in order to achieve profitability. This often involves large investments and the
risk of sunken costs making it difficult to change direction. Farms of all
sizes should be able to live off their produce without having to repeatedly
expand or make expensive investments.

A substantial reduction in meat and dairy consumption is necessary for both
public health and for food systems to function within the planetary boundaries.
Despite this, EU policy has failed to rebalance European agriculture and diets
to become more plant based. Although 70% of arable land in the EU is dedicated
to feed production for animals, this still only covers 30% of the feed required
for current
levels of meat production. The remaining feed is imported, making meat
consumption and production also subject to vulnerable world markets. Comparing
sectors, 82% of subsidies from the CAP are directed towards animal-based
products (including subsidies for feed production). EU policy has also failed
animals and citizens’ calls for higher welfare in animal farming with, among
others, outdated legislation for transport, slaughter and the confinement of
animals, especially by continuing to permit animals to be kept in cages.

Eco-schemes introduced in the EU Common Agricultural Policy reform 2023 to
incentivise sustainable farming practices were far from sufficient in both
design and implementation across the Member States. Similarly, the European
Court of Auditors recently raised concern about significant weaknesses in the
EU's strategy to support organic farming (ECA 2024), which has a high risk of
failing to reach the target of 25% of agricultural land to be under organic
production by 2030. Organic farming needs to be strengthened by supporting its
development across the entire sector, including downstream actors and incentives
for increased consumption. The agricultural sector must be part of the circular
economy, in all aspects of food production.

Synthetic pesticides continue to contaminate air, water and soil while driving
the decline in biodiversity. Yet binding targets to reduce the use and risk of
synthetic pesticides at Member State level are still absent. Extensive
investment, including funding and advisory services, in the uptake of already
existing alternatives to synthetic pesticides is necessary for the future of
European food production, as well as investment in further research into
integrated pest management.

Not investing fully in the transition to sustainable farming and food systems
will be very costly, already in the near future. Europe is the fastest warming
continent and agriculture is one of the most vulnerable sectors. Heatwaves,
droughts and excessive rainfall are already posing a substantial risk to food
production across Europe and are a critical risk in southern Europe (EEA, ECRA -
crop production). While 95% of the food we eat depends on soil ecosystems, 60-
70% of EU soils are considered unhealthy, posing the risk of
amplifying impacts from climate change, such as floods, desertification and
water shortages. Such risks will probably accelerate with further global
warming. Globally, temperatures in 2023 and 2024 have been in the order of 1.5
degrees above pre-industrial temperatures. Moreover, lower soil fertility is
increasing the need for fertilizer inputs, creating a vicious circle that must
be broken.

Yet, agriculture has significant potential for adaptation with multiple
beneficial resilience effects for entire communities and society as a whole, by
transitioning to low-input sustainable agricultural practices which
regeneratively use rather than deplete natural resources. For instance,
increasing and managing soil fertility and biodiversity reduces the need for
synthetic fertilizers and pressure from pests and diseases. Diversifying farming
and cropping systems increases both ecological and in-farm economic resilience.
Improving animal welfare and reducing intensive animal farming contribute to
climate change mitigation and less pollution as well as reducing risks of
zoonoses. Reducing the number of animals is necessary although, when sustainably
managed, livestock in farming systems can be an integral part of maintaining
biodiversity as well as providing organic fertilizers.

The upcoming EU Common Agricultural Policy must move from risk management that
focuses solely on coping to a CAP that focuses on prevention.

In our vision, the following measures are key if EU agricultural policy is to
support a transition to sustainable and resilient farming systems:

End untargeted subsidies and use public money for public goods. Phase out the
area-based direct payments in exchange for a significant increase in funding for
result-based incentives for sustainable practices which reward farmers for
environmental goods rather than simply covering costs. Farmers should be paid
for strengthening ecosystem services. Ensure subsidies are resource efficient,
regional specific and contribute to long-term resilience. Public money should
not, for instance, support the continued production of water-intensive crops in
water-stressed areas.

Investing in the transition to make agro-ecological and regenerative farming the
norm, including through extensive and independent advisory services. Conduct a
robust assessment of the farm types most affected by phasing out direct payments
and set up a just transition mechanism for those farms most affected,
entailing financial and advisory support for the establishment of long-term
transformation plans.

Ensure fair and decent incomes for farmers by ensuring that farmers are not paid
less than production costs by adding ‘selling under production costs’ to the
blacklist in the Unfair trading practices Directive. It is crucial to combat
power imbalances in the food value chain by, among others, supporting primary
producer organisations and the infrastructure of shorter supply chains to
increase local production and consumption, for instance by supporting
alternative food networks and revising the Public procurement Directive. Promote
generational renewal and a variety of farm sizes by targeted support to young
farmers and small-scale farms.

Introduce a robust set of quantitative binding EU and national targets and
impact indicators. In particular, introduce a target to reduce agricultural
emissions by 2040 by at least 30% compared to 2015 and binding targets to
decrease the use of chemical pesticides. The impact indicators should be in line
with international commitments and should at least cover emissions, the use and
risk of pesticides, the use of synthetic fertilizers and nutrient leakage, the
use of antimicrobials, farmland biodiversity, soil health, water use, and water
quality.

Genuine practice of the precautionary principle regarding GMOs/NGTs, including
the effects resulting from market power/relations and consumer transparency.

Ensure effective implementation and accountability through efficient monitoring
which makes use of (or investigates the potential use of) information and
communication technologies to simplify administrative management, such as
satellite data. Enforce a robust accountability mechanism ensuring that Member
States are held accountable to targets.

Ensure stronger links and better coherence between the upcoming CAP and EU
environmental and market regulation policy. All legislation concerning
agriculture and food needs to work towards the same objectives and targets.
Subsidies provided in the CAP, for instance, must be consistent with the
legislation and objectives concerning nature restoration, water resilience,
climate change adaptation, soil health, pesticides and unfair trading practices.

Effectively rebalance diets and food production to more plant-based foods by
strengthening the production of local and varied protein crops for human
consumption. Investigate economic incentives for reduced meat consumption at an
EU-level.

Ensuring ethical animal farming by making animal welfare a standalone objective
in the CAP. Allocate sufficient financial and advisory resources to farmers who
transition from intensive to extensive animal farming. Ensure sufficient
financial support for farmers for the protection of livestock damage from large
carnivores to promote coexistence. Rapidly update outdated animal welfare
legislation.