Response to the Strategic Dialogue of the future of EU Agriculture
1. How can farmers, and the rural communities they live in, be given a better perspective, including a fair standard of living?
At the same time it is crucial to ensure successful and speedy green transition in the agriculture sector, it is also important to take care of our farmers and ensure that the financial burden will not be solely on their shoulders. In Finland, the average income for farmers is below median when at the same time the cost of inputs has risen more than the market price of outputs. Hence, we need to focus both on the cost side as well as on the income side.
As the cost of inputs have increased rapidly over the last few years, the monopolistic competition have set the high market price. For EU, it would be beneficial to diversify suppliers, and invest in non-fossil fuel based fertilizers, such as green ammonia and recycled fertilizers, so that dependency on Russian fossil fuel based fertilizers and gas can be immediately cut down. This will also improve the security of supply situation as well as food security in the EU.
In creating a more future proof and sustainable agriculture sector in Europe it is crucial to create markets for the new outputs such as carbon sinks, biodiversity enhancement and ecosystem services, which would provide appropriate incentives for planet positive farming practices. In addition to carbon sequestration and biodiversity protection bringing additional incomes to farmers, appropriate incentives should be implemented across the whole food sector – production, industry and consumption – to ensure that green transformation is encouraged and enabled throughout the agriculture sector. Farmers should also be provided appropriate training and education on sustainable farming practices and ensure fair playing field for all actors in the sector. Farm level local solutions are the key to tackle this global level problem.
2. How can agriculture be supported within the boundaries of our planet and its ecosystem?
The green transition in the EU’s Agriculture sector is necessary for reducing emissions in the sector, but also likely to provide many positive opportunities socially, economically and environmentally. Although, for the EU to ensure a competitive take in the transformation, requires speedy actions and incentives to support the necessary changes in the sector. Subsidising the technologies needed for the green transition, such as ramping up the non-fossil fuel based fertilizer market by for example blending obligation of green ammonia and recycled fertilizers, should be promptly implemented. Additionally, subsidizing and supporting sustainable plant-based and hybrid (combining plant, animal, and cellular agriculture ingredients) food production technologies is strongly encouraged. Research and innovation in the development of sustainable alternative novel food sources, as well as plant breeding toward climate resilient crops, should also be supported.
As mentioned in the previous answer, finding incentives for carbon sequestration, biodiversity protection and enhancement and ecosystem services could increase farmer’s income. In addition, these are likely to be valuable in reducing emissions in the sector and helping us to stay within the planetary boundaries. Market based mechanisms for sequestering carbon and enhancing biodiversity are key in creating necessary markets where farmer’s income can increase with sustainable farming practices. The metrics and accounting system for a fair system should be further developed for improved accuracy without increasing the reporting load for farmers.
Biogas based gas production, industrial scale or farm level, is also an option to replace diesel in agriculture machinery and help reduce emissions and increase circularity in the sector. This requires also investigating the challenges and obstacles for scaling up biogas production. In addition to ensuring sustainable farming practices and mitigation efforts in the EU’s agriculture sector, it is also necessary to improve soil health and water management and to ensure that appropriate climate change adaptation measures are in place. It is also important to improve the local level circulation of energy and nutrients. Nitrogen-binding crops such as legumes are also beneficial in absorbing nitrogen from the atmosphere whilst improving soil health by active and deep root systems.
3. How can better use be made of the immense opportunities offered by knowledge and technological innovation?
In the EU, there is no lack of existing knowledge, innovation nor technological solutions to solve the climate crises, including the agriculture sector. However, the challenges lie for keeping the knowledge and skills in the EU – by offering an attractive and competitive market.
Due to the strict regulatory and reporting requirements, the standards and cost are higher in Europe than in rest of the world. This have resulted many European businesses move their operations elsewhere, particularly smaller companies and start-ups. For example, in the EU it would be important to provide a faster route to the market for new innovative technologies and solutions. Furthermore, for a fair playfield, IPR for patents by publicly funded research projects and universities should be made publicly available. Publicly funded patents for smart and sustainable technologically advancements and innovations should be encouraged to be used widely. This would be of course different for privately paid patent rights. Furthermore, investing in research and collaboration is also crucial to keep the world-class research andknowledge in Europe. Also plant breeding technologies should be further advanced in finding more climate resilient cultivars.
Thus, there are plenty of knowledge and technological innovation available in the EU. What is necessary is to ensure they are appropriately harnessed, creating attractive market opportunities and supporting these with clear indication and plans for investors and industry. This also requires appropriately supporting the actors in the sector with the transition, for example in regards of digitalization.
4. How can a bright and thriving future for Europe's food system be promoted in a competitive world?
Strict regulatory requirements in the EU have resulted many food innovations and technologies to move their business to Asia and the USA, where the markets have been more accepting and flexible of novel foods and innovative technologies in the food sector. In addition to the value of keeping these businesses in Europe, many of these innovations and technologies could help Europe to reach its climate targets. Thus, lighter, cheaper and faster regulatory processes are needed in the EU. Furthermore, it is important to ensure a fair playing field and competitive market in the EU where the actors do not lose the competitiveness to actors from outside EU, by for example ensuring that imported products follow the same criteria as European products.
Adapting more flexible regulations in the EU could ensure stability in the agriculture sector in the future and provide more stable operations and food security, as many of these novel technologies are less impacted by climate change e.g. extreme climate conditions. Competitive market in the EU also requires ensuring that standards for food where imported food from outside Europe is not favoured over food produced within Europe, due to higher production costs in Europe.
The green transformation in the agriculture sector is inevitable, necessary, and can be done profitably – for both nature and people. The climate problem requires implementing all successful solutions in hand and for everyone in the food sector to work together towards a better and more sustainable future.
The EU should be the frontrunner and lead the way for the rest of the world.
We thank for the opportunity to take part of the Strategic Dialogue.
For more information:
Tuuli Kaskinen, CEO, Climate Leadership Coalition, tuuli.kaskinen@clc.fi +358 50 5149752
Minttu Liuhto, specialist, Climate Leadership Coalition, minttu.liuhto@clc.fi +358 50 3433024
