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.