Bayer Report Warns Europe Risks Falling Behind Global Agricultural Competitors Without Faster Innovation

16 October 2026, Leverkusen: The European Union (EU) and the United Kingdom risk losing further ground to major agricultural producers, including the US, Brazil, China, Canada and India, unless farmers gain faster access to technologies that can address climate challenges and improve productivity, according to a new report commissioned by Bayer.

The report combines economic analysis by Oxford Economics, consumer polling involving more than 8,000 respondents and in-depth interviews with farmers across eight European markets. It calls for a more proportionate regulatory framework and greater openness to agricultural innovation to strengthen Europe’s competitiveness and resilience.

The findings highlight the strategic importance of crop agriculture, which contributes €246 billion to EU GDP and €5.7 billion to UK GDP. Every €1 billion in crop agriculture output supports nearly €3 billion in downstream production across other sectors, underlining the sector’s wider economic significance.

However, agricultural production growth in Europe has lagged behind major global competitors. Between 2011 and 2023, crop output in the EU grew by an average of just 0.1% annually, while the UK recorded no growth. In comparison, annual growth averaged 1% in the US and 2% globally, while China, Canada and India recorded growth of between 2% and 3%. Brazil was among the fastest-growing markets, with annual growth averaging 3.3%.

The longer-term comparison also points to a widening gap. Average EU crop production was only 2% higher than in the previous decade, compared with increases of 16% in the US, 44% in Canada and 51% in Brazil.

Rising agricultural input costs and climate-related risks are adding to the pressure on European farmers. Climate change is estimated to cause average annual losses of €17.4 billion in the EU, equivalent to 6.4% of its crop production. These losses are projected to increase to between €24.8 billion and €28.9 billion by 2050.

The report warns that farmers face mounting production pressures while innovations often take considerable time to reach the field. Producers in competing markets have access to a wider range of seed technologies, crop protection solutions and digital tools, or can adopt these innovations more quickly.

According to Oxford Economics, improved access to modern agricultural technologies could help farmers respond to climate-related and geopolitical challenges while strengthening the competitiveness and resilience of the agricultural sector.

“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.”

Regulatory barriers constrain agricultural innovation

The report identifies regulatory restrictions as a major obstacle to farmers’ access to new technologies. It highlights the need for a broader range of solutions, including innovative seed technologies, modern crop protection products, precision agriculture, automation and artificial intelligence (AI).

Bayer recently announced an upcoming phase of major innovation launches, including new seed and trait solutions based on genome editing and AI-enabled discovery of new modes of action for crop protection. However, the report notes that the availability of such innovations depends significantly on the regulatory environment.

According to the research, farmers are increasingly concerned about the shrinking range of crop protection options available to them. More than 1,000 active ingredients were authorised in the EU in the early 2000s, compared with approximately 420 today. Over the past seven years, farmers have lost access to 92 active ingredients, while only one new synthetic active ingredient entered the market during the same period.

The UK has approved 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 withdrawn since Brexit.

However, the report warns that the dynamic alignment with the EU regulatory framework currently under discussion could lead to the withdrawal of these approvals. Such changes could affect crop yields and farm incomes if transitions are not carefully managed.

The findings point to the need for a predictable and proportionate regulatory framework that encourages innovation while maintaining high safety and stewardship standards. Lengthy approval procedures, rising administrative requirements and slow adoption pathways are identified as factors restricting farmers’ access to new technologies.

“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.”

Consumers support science-based agricultural innovation

The report also highlights public recognition of agriculture’s role in food security and economic stability. Across Europe, 84% of consumers agree that food security is a matter of national security, reflecting the close links between farm resilience, affordable food and reliable food supplies.

Consumers also expressed broad support for the use of science and technology in agriculture. According to the survey, 84% believe farmers should have access to the latest technologies and innovations to accelerate progress, improve harvests and reduce food prices.

Meanwhile, 77% of respondents said reducing bureaucracy and administrative red tape would help ensure Europe can produce enough food. The findings also suggest that agricultural innovation could influence political preferences, with 63% saying they would be more likely to vote for a political party that supports farmers’ use of new science and technology.

“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 agricultural expertise and recent policy developments as potential foundations for strengthening its position in global agriculture.

“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.”

Also Read: Bayer to Distribute INERA’s Biological Crop Nutrition Products in India

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