A Guide to Developing Agricultural Businesses: The New Wave of Green Innovation
The importance of green innovation and sustainability in agriculture has risen to a critical level for the food industry. Modern agricultural businesses must not only increase efficiency and productivity but also minimise their environmental footprint for the sake of a sustainable future.
Current Trends and Data
In the context of reducing the environmental impact of the global agricultural sector, according to the Intergovernmental Panel on Climate Change (IPCC), agriculture is responsible for around 24% of greenhouse gas emissions. This figure underlines the role of agricultural businesses in combating climate change and achieving sustainability goals.
The European Union, for example, places greater emphasis in its Common Agricultural Policy (CAP) for 2021–2027 on supporting green technologies and encouraging sustainable farming practices. The EU aims to reduce pesticide use by 50% and increase the share of organic farming by 20% by 2030.
The Numbers Behind the Development Opportunities
According to the Food and Agriculture Organization of the United Nations (FAO), 10–20% of the world's agricultural land can no longer be cultivated without irrigation, and this proportion may increase further as a result of climate change. Agricultural businesses therefore need to adopt innovative irrigation methods to improve water efficiency.
According to the European Environment Agency (EEA), the EU's agricultural greenhouse gas emissions had fallen by 21% by 2018 compared with 1990 levels. This is partly thanks to innovative practices and technologies that make it possible to reduce greenhouse gas emissions, for example through biogas production and the use of energy-efficient agricultural machinery.
The Role and Measurable Impact of Innovation
Advances in the digitalisation of agriculture and in agricultural robotics are enabling precision farming, which results in more efficient crop production and lower use of chemicals. According to data published by Farming First, precision farming can reduce pesticide use by 90% and cut water use by up to 50%.
According to data from the Food and Agriculture Organization of the United Nations (FAO), the growth of biogas production is expected to bring a significant reduction in methane emissions from agriculture, which are one of the sector's main sources of greenhouse gases.
Funding and Detailed Programmes
The EU's LIFE programme, for example, provides several billion euros to combat climate change and support environmental projects, including green innovation in agriculture. This funding enables agricultural businesses to invest in sustainable technologies and practices, improving production efficiency and reducing environmental impact.
The budget of the Common Agricultural Policy (CAP) for 2021–2027 is EUR 387.8 billion, a significant part of which can be used to support green technologies and sustainability projects.
Next Steps
Agricultural businesses need to approach sustainability and green innovation through strategic planning and by making use of innovation opportunities. Based on the data and concrete measures, however, it is clear that the transition to sustainable farming practices not only brings environmental benefits but can also deliver economic and social benefits for the agricultural sector, which are key to creating a sustainable future.
