Resilient Farming Strategies for Competitiveness and Sustainability

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Explore strategies to enhance competitiveness and resilience in farming, focusing on maintaining food supply, protecting the environment, and supporting farmers amidst risks and challenges. Discover how policy levers can drive innovation and change in agriculture while balancing sustainability and economic viability.

  • Farming
  • Competitiveness
  • Resilience
  • Sustainability
  • Agriculture

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  1. Supporting Competitiveness and Resilience in Farming Prof Thia Hennessy University College Cork, Ireland

  2. Agenda What is competitiveness and resilience? What do we want to achieve? What are the potential policy levers? The way forward 2

  3. What is competitiveness? 3

  4. Total Factor Productivity Quantity of output for given level of inputs EU Average Annual growth 0.5% -1.5% Mainly labour productivity Lagging technical productivity But Canada 2.7% Brazil 2.2% China 1.7% Source: Beck et al (2024) 4

  5. What is resilience? Robustness, adaptability & transformability (Meuwissen et al., 2019) 5

  6. Farmers Exposure to risk Source: JRC (2023) 7

  7. Farmers Exposure to risk Source: JRC (2023) 8

  8. Farmers Exposure to risk 9 Source: JRC (2023)

  9. What do we want to achieve? Maintain or increase food supply at affordable prices while; protecting our natural environment enable farmers to withstand shocks & earn a decent and consistent living making farming attractive to new entrants Are sustainability and competitiveness mutually achievable? Policy trade-offs? 10

  10. Guiding Policy Principles Budget Focus on Sustainable competitiveness Certainty for farmers Flexibility Increasing challenges & consumer expectations CAP stay true to its goals Farmers are facing many risks Respond to new opportunities, threats & technologies Leverage more funds (public & private) to incentivise innovation and change Not the time for major upheaval CAP budget needs to be at least maintained Give power to Member States Align EU institutions to accelerate change (eg EIB) 11

  11. Policy to support economic resilience Direct payments buffer against volatility Active Farmer, Capping, Degressivity & Front Loading Greater value sharing in the supply chain Producer groups, price observatory Risk management tools Limited success to date: crop insurance & income stabilisation Potential for countercyclical payments Source: Matthews (2023) 12

  12. Policy support for environmental resilience Sustainable food security and competitiveness Trade-off between regulation and competitiveness Outcome-based support for win-win green technologies Precision agriculture, manure management, animal genetics etc Source: Teagasc (2023) 13

  13. Policy support for environmental resilience Source: Teagasc (2023) 14

  14. Policy support for environmental resilience Sustainable food security and competitiveness Trade-off between regulation and competitiveness Outcome-based support for win-win green technologies Precision agriculture, manure management, animal genetics etc Flexibility to fund accelerated innovation Coherence - Trade & agriculture policy Source: Teagasc (2023) 15

  15. Social Resilience Making Farming attractive Generational renewal and gender balance Incentives for young farmers - limited success Economic viability of the farm business Security free lending Support older farmers to transfer farmer s pension Reduce the administrative burden using AI Support to portray a positive image of farming 16

  16. In conclusion Many challenges & opportunities ahead Resources are required to equip farmers Policy coherence essential Trade-offs between competitiveness and sustainability Measures that will Target income support Promote & compensate the sustainability initiatives Accelerate innovation for productivity Make farming attractive to new entrants 17

  17. Thank- you for your attention Prof. Thia Hennessy Contact: thia.hennessy@ucc.ie

  18. References Agrosynergie (2020) Evaluation study of the impact of the CAP measures towards the general objective viable food production : final report. Edited by European Commission. Directorate General for Agriculture and Rural Development. Beck, M et al (2024) Research for AGRI Committee Rural Areas - Levels of support and impact on competitiveness of farms, European Parliament, Policy Department for Structural and Cohesion Policies, Brussels Bertolozzi-Caredio, D. et al (2023). Risks and vulnerabilities in the EU food supply chain, Publications Office of the European Union, Luxembourg, 2023, doi:10.2760/171825, JRC135290. Matthews, A. et al. (2016) Research for AGRI Committee CAP Reform post-2020 Challenges in Agriculture. European Parliament, Policy Department for Structural and Cohesion Policies, Brussels Meuwissen M. P . M.et al (2019). A framework to assess the resilience of farming systems. Agricultural Systems, 176: 102656. Teagasc (2023). Marginal Abatement Cost Curve 2023. https://www.teagasc.ie/environment/climate- centre/publications/reports/marginal-abatement-cost-curve-2023/ 19

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