Research Strategy

QuantiFarm        LIVENET       CEADS

European agriculture continues to evolve, but faces intensifying challenges. Climate change, biodiversity loss, and the volatility of global supply chains add pressure to an already complex sector. Arable land remains scarce, and key resources such as water and soil require stronger protection to ensure long-term sustainability. Meanwhile, demographic shifts and labour shortages persist, as younger generations hesitate to pursue careers in farming due to economic and structural uncertainties. At the same time, demand for sustainable, affordable food is rising, driven by urbanisation and the goals of the European Green Deal and the Farm to Fork Strategy.

Modern agricultural machinery equipped with state-of-the-art digital technologies has become essential to help farmers address these issues. Beyond traditional precision farming techniques, the integration of smart data management, AI-driven automation, autonomous machinery, and alternative energy sources is transforming daily farm operations. The adoption of carbon farming practices, regenerative agriculture, and digital platforms for enhanced farm-to-market connectivity is also enabling improved productivity with reduced environmental impact. Advanced technologies like robotics, sensors, and AI-based decision-support systems are fostering more resilient, resource-efficient, and climate-smart practices.

The European framework for Research and Innovation (R&I) increasingly supports this transformation. Priorities include decarbonising agriculture, promoting circular bioeconomy models, improving soil health, and enabling a transition to digital, data-driven farming. Efforts to adopt alternative fuels, electrification, and sustainable inputs are spearheading a new era for  farm machinery, helping align the sector with both economic and environmental objectives. With the backing of innovative farm machinery manufacturers, agriculture can remain productive while contributing to a greener and more resilient food system.

CEMA’s position on the future EU research and innovation agenda

European research and innovation programmes such as Horizon Europe and Digital Europe play a pivotal role in bringing innovations to the field. These initiatives provide funding to develop and scale advanced machinery, innovative digital tools, and sustainable practices, empowering farmers to increase efficiency, output, and environmental stewardship through these technologies. The Common Agricultural Policy (CAP) and the forthcoming Framework Programme 10 (FP10) are equally important. While the CAP facilitates the adoption of innovation at farm level through direct support, FP10 aims to strengthen industry-led research and has been recommended for a budget increase to €200 billion to match global R&D investment. This increased funding is expected to attract significant industry participation, ensuring that research aligns with practical agricultural needs and that innovations are effectively commercialized.

These instruments collectively create a strong support system to promote the uptake of cutting-edge technologies. However, several barriers still prevent many private companies from engaging effectively in EU R&I programmes. These need to be addressed in FP10 to unlock the private sector’s full potential:

1. Complex application and administrative processes

• Issue: Horizon Europe proposals require detailed technical, financial, and impact documentation.
• Impact: SMEs often lack the resources or expertise to manage the process.
• Example: Lengthy application forms, financial forecasts, and eligibility checks increase complexity.

2. High competition and low success rates

• Issue: Calls under Horizon Europe are highly competitive, with success rates below 17%.
• Impact: Many strong proposals are rejected. This discourages participation, as companies see it as a high-risk time investment.
• Example: The EIC Accelerator sees promising projects fail despite high innovation potential.

3. Misalignment between R&I and industry timelines

• Issue: Private companies are often driven by shorter-term market demands, whereas R&I programs (including Horizon Europe) prioritize longer-term research objectives and fundamental knowledge generation.
• Impact: The disconnect deters companies seeking faster returns (quicker commercialization).

4. Financial constraints

• Issue: Co-financing requirements and delayed payments challenge companies with limited cash flow. SMEs in particular may struggle to manage upfront costs or potential delays in payments due to long reporting/evaluation processes.
• Impact: Companies with less financial flexibility are particularly affected and may opt out.
• Example: Payment linked to milestones creates cash flow risks.

5. Risk perception and uncertainty

• Issue: Breakthrough R&I projects come with high uncertainty. Private companies may perceive this as a risk to their resources or reputation.
• Impact: Some companies prefer safer, incremental innovation paths over disruptive R&I engagement.

6. Difficulty finding suitable project partners

• Issue: Multi-stakeholder consortia including universities, R&I bodies, and SMEs from different countries are often required for successful Horizon Europe projects, but hard to assemble.
• Impact: Partnership complexity can delay project planning and discourage private-sector involvement.

7. Limited awareness and support for newcomers

• Issue: Many firms, especially SMEs, are unaware of available opportunities with Horizon Europe or the existing support structures (like National Contact Points) to navigate them.
• Impact: This leads to under-representation of private companies, particularly smaller firms and those from less research-intensive sectors.

The next EU R&I framework will have a deep and long-lasting impact on Europe’s competitiveness and technological leadership. To ensure future prosperity and autonomy, the EU must become a global leader in Research, Development and Innovation (RD&I), through the creation of new leading technologies, and public/private investments. Technological leadership is not only essential for growth but a strategic asset in global geopolitics. Mastering key future technologies will be crucial to control strategic nodes and create mutual strategic dependencies within international value chains. In essence, an integrated research, innovation, and industrial policy is vital for Europe’s future.

To that end, the following priorities should guide FP10:

1. Establish a dedicated scheme for technological leadership
   FP10 must include a dedicated scheme that aligns R&I with industrial needs, and market uptake. This is essential for driving growth and achieving the net-zero and circular economy objectives. Industry must be involved in setting priorities, strategies, and roadmaps.
2. Simplify participation
   Streamline application processes, reduce bureaucracy, and introduce flexible funding structures to facilitate access, particularly for SMEs. Reducing complexity will broaden participation and foster innovation across all levels of technology readiness levels. 
3. Strengthen public–private partnerships (PPPs)
   Companies should play a central role in setting research agendas within PPPs. By aligning project objectives with industrial needs, we can maximise the impact of public funding and improve the adoption of research results. 
4. Ensure excellence-driven project selection
   Evaluation processes should be based on clear, objective, and quality-focused criteria. This will ensure that funding goes to projects with the greatest potential for impact, strengthening Europe’s global position in innovation. 
5. Enhance technology infrastructure
   Invest in technology infrastructures that enable efficient  testing, validation, and scaling of new technologies, to bridge the gap between research and commercial deployment. 
6. Ensure proportionate research security measures
   Security requirements should be pragmatic and limited to clearly defined critical technological areas. Overly complex controls risk adding unnecessary barriers to participation. 
7. Protect intellectual property and trade secrets
   Strengthen innovation frameworks by promoting robust IP rights and confidentiality measures. 
8. Support the development of technical standards
   The EU should actively support the involvement of European companies in international standardisation bodies. Technical standards are crucial for turning research into deployable solutions and for securing global market access for European technologies.