The long-term sustainability of European agriculture depends not only on policy support through the Common Agricultural Policy (CAP) but also on private and public investment, generational renewal, and innovative business models. While CAP has been a lifeline for farmers, there remains a critical gap in long-term investment, particularly for new entrants and young farmers facing high upfront costs, low profit margins, and financial instability.
Generational Renewal in European Agriculture
Edited by Dr. Antonios Nestoras
The long-term sustainability of European agriculture depends not only on policy support through the Common Agricultural Policy (CAP) but also on private and public investment, generational renewal, and innovative business models. While CAP has been a lifeline for farmers, there remains a critical gap in long-term investment, particularly for new entrants and young farmers facing high upfront costs, low profit margins, and financial instability. Investment in agriculture is inherently long-term, requiring financial models that balance risk and reward. Farming is a capital-intensive sector with long investment horizons, making it less attractive to private investors and banks. At the same time, diversification strategies – such as agri-tourism, value-added processing, and environmental markets such as carbon credits – offer new revenue streams that could increase the financial resilience of farmers.
This publication is the outcome of the Innovation Policy Lab, a joint undertaking between the European Liberal Forum (ELF) and the Friedrich Naumann Foundation for Freedom Europe (FNF Europe). It represents a culmination of collaborative efforts, discussions, and expert insights aimed at addressing the multifaceted challenges confronting Europe. The ELF–FNF Policy Labs brought together a diverse group of policymakers, academics, practitioners, and civil society representatives from across Europe.
This dynamic gathering fostered an environment conducive to in-depth analysis, debate, and creative thinking. The participants, each bringing their unique perspectives and expertise, played a crucial role in shaping the discussions and formulating the policy recommendations presented in this book.
It is important to note that not all chapters in this publication were developed solely through this conference. While the majority of the content is derived from the Policy Labs, some chapters were influenced by additional research, expert consultations, and policy discussions. These contributions were integrated to provide a comprehensive and well-rounded set of policy proposals.