Europe risks falling further behind the world’s leading agricultural producers unless farmers gain faster access to new technologies, according to a new report commissioned by Bayer that warns of a widening gap in productivity, resilience and competitiveness.
The report, combining economic analysis by Oxford Economics, polling of more than 8,000 consumers and in-depth interviews with farmers across eight European markets, identifies mounting climate pressures, rising input costs and regulatory barriers as major challenges for European agriculture.
The figures paint a stark picture. Between 2011 and 2023, crop output in the European Union grew by an average of just 0.1% annually, while the UK recorded no growth. By comparison, output increased by 1% in the US and 2% globally, with China, Canada and India recording annual growth of between 2% and 3%. Brazil led the comparison, averaging 3.3% annual growth.
The longer-term gap is equally pronounced. Average EU crop production was just 2% higher than in the previous decade, compared with increases of 16% in the US, 44% in Canada and 51% in Brazil.
The report warns that Europe’s agricultural competitiveness is under growing pressure just as climate change threatens to inflict heavier losses on farmers. Climate-related risks already cost EU crop production an estimated €17.4 billion annually, equivalent to 6.4% of total output. Those losses could rise to between €24.8 billion and €28.9 billion by 2050.
The report argues that the growing strain on farmers is colliding with slow pathways for getting new technologies from development to the field. European producers, it says, are competing with farmers elsewhere who have access to a wider range of seed technologies, crop protection products and digital tools — or can adopt them sooner.
Frank Terhorst, Head of Strategy & Sustainability for Bayer’s Crop Science Division, said Europe must treat agriculture as a strategic priority and accelerate the adoption of innovation.
“The EU and the UK are confronted with a widening resilience gap. To counter that, agriculture must be understood as a critical strategic sector for Europe’s autonomy and competitiveness,” said Frank Terhorst, Head of Strategy & Sustainability for Bayer’s Crop Science Division.
“It is critical to embrace innovation as an opportunity rather than a risk to be managed. Europe has the capabilities to lead, but we need to ensure that enough solutions are available to farmers and that innovation can reach the field faster.”
The report identifies innovative seed technologies, modern crop protection products, precision agriculture, automation and artificial intelligence as key tools for improving productivity and helping farmers respond to climate and geopolitical shocks.
Bayer has announced an upcoming phase of major innovation launches, including new seed and trait solutions involving genome editing, alongside AI-enabled research to discover new modes of action for crop protection. But the report argues that the extent to which farmers can benefit from such advances depends heavily on regulatory decisions.
One of the report’s central concerns is the shrinking range of crop protection tools available to European farmers.
According to the findings, more than 1,000 active ingredients were authorised in the EU in the early 2000s. Today, around 420 remain approved. Farmers have lost access to 92 active ingredients over the past seven years, while only one new synthetic active ingredient reached the market during that period.
The UK has taken a different approach since Brexit, approving four entirely new active ingredients since 2022 that remain unapproved or pending in the EU. It has also retained approval for 15 crop protection active ingredients whose EU licences have expired or been banned since Brexit.
However, proposed dynamic alignment with the EU regulatory framework could put those UK approvals at risk, the report says, potentially affecting crop yields and farm incomes if changes are not managed carefully.
The report calls for a more predictable and proportionate regulatory system that maintains high safety standards while allowing farmers to access proven technologies more quickly. It points to lengthy approval procedures, growing administrative burdens and slow adoption pathways as obstacles to agricultural innovation.
“An approval approach based on real-world risks and benefits instead of theoretical hazards can help ensure farmers gain access to proven innovations while maintaining Europe's high safety standards. Recent UK approvals demonstrate how proportionate pathways can support quicker access to innovation,” added Frank Terhorst.
“The report’s findings underscore the urgent need for agricultural innovation. We invest heavily in such new solutions, and we want European farmers to benefit from them like their global peers do.”
The research also challenges the idea that European consumers are broadly opposed to agricultural innovation.
Across Europe, 84% of consumers surveyed agreed that food security is a matter of national security. The findings suggest respondents see resilient farming, affordable food and reliable food supplies as closely linked.
Support for agricultural technology was similarly strong. Some 84% said farmers should have access to the latest technologies and innovations to improve harvests and help bring down food prices. Meanwhile, 77% said cutting bureaucracy and red tape would help ensure Europe can produce enough food.
The findings also point to a potential political dimension: 63% of respondents said they would be more likely to vote for a party that supported farmers using new science and technology.
Matthias Berninger, Head of Public Affairs, Science, Sustainability & HSE at Bayer, said the findings showed that consumers understood the connection between agricultural innovation and food security.
“Europeans are more open to innovation and technology than many would assume. People see the connection between resilient farming, food security and affordable food,” summarised Matthias Berninger, Head of Public Affairs, Science, Sustainability & HSE at Bayer.
“The findings are a call to action for political, business and civil-society leaders to champion science and new technologies. Europe has spent too much time admiring problems rather than seizing opportunities. While regulation must ensure safety and build trust, it should also enable progress in areas such as AI and agriculture. Europe must move from a culture of risk avoidance to one of innovation.”
Berninger pointed to Europe’s scientific expertise, agricultural capabilities and industrial base as strengths that could help close the gap with international competitors. He also cited the recent decision on New Genomic Techniques as evidence that progress is possible.
“This summer’s decision on New Genomic Techniques demonstrated that Europe can choose innovation over hesitation. We must not lose that momentum. We have great farmers, scientific expertise, good soils and industrial capabilities. We now need to translate these strengths into greater resilience and competitiveness.”
The report places agricultural innovation at the centre of a broader debate over Europe’s food security, economic resilience and ability to compete in global markets.
Crop agriculture contributes €246 billion to EU GDP and €5.7 billion to UK GDP, according to the findings. Every €1 billion in crop agriculture output also supports almost €3 billion in downstream production across other sectors, underlining the wider economic stakes of a sector facing stagnant growth and mounting climate risks.
Its central warning is that Europe’s ability to maintain a competitive agricultural industry will depend not only on developing new technologies, but also on ensuring farmers can use them in time to make a difference.
For European policymakers, the challenge is balancing safety and public trust with a regulatory system that can respond to rapidly evolving agricultural pressures. For farmers, the stakes are productivity, profitability and resilience in an increasingly demanding operating environment.
The report’s message is clear: without faster access to innovation, Europe risks allowing its agricultural competitors to pull further ahead.
