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Introduction: FoodDrinkEurope commissioned the Anthesis Group to produce a discussion paper on funding the transition to sustainable agriculture in the EU. Acknowledging modern agriculture's success, the paper emphasizes the need for methods aligning with ecological and societal needs. It examines the costs, stakeholders involved, and proposes funding mechanisms, emphasizing soil health as a key indicator. The estimated transition cost is €28-35 billion, with potential long-term benefits. The paper suggests evolving Common Agricultural Policy (CAP), creating climate funds, and enhancing public-private partnerships.
Challenges
- Geographic Diversity: The varied landscapes across EU Member States pose challenges for uniform sustainability practices, requiring tailored approaches and collaborative efforts.
- Climate Change and Soil Health: Increasingly extreme weather patterns and soil degradation threaten agricultural productivity, necessitating urgent action to preserve soil health and mitigate climate impacts.
- Financial Barriers: Limited access to capital and lack of compensation mechanisms deter farmers from investing in sustainable practices, hindering the transition to environmentally friendly agriculture.
- Demographic Shifts: An aging farming population and knowledge gaps impede the adoption of sustainable techniques, highlighting the need for education and support for younger farmers.
- Policy Coordination: Inconsistent policies and insufficient government support hamper collaboration between stakeholders, delaying progress towards sustainable agriculture goals.
Recommendations:
- Prioritize soil conservation and regeneration efforts through financial incentives, technical support, and education programs.
- Establish funding mechanisms and insurance schemes to mitigate financial risks associated with transitioning to sustainable practices.
- Promote knowledge exchange and provide training opportunities to equip farmers with the skills and expertise needed to implement sustainable techniques effectively.
- Coordinate policies at the national and EU levels to provide consistent support for sustainable agriculture initiatives, fostering collaboration and innovation across the sector.
Encourage partnerships between food and drink industry stakeholders and farmers to drive investment in sustainable supply chains and promote market-driven sustainability initiatives.