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6.7 Billion euros to support innovation in agriculture between 2018 and 2023

Insufficient deployment of innovations needed for agro-ecological transition

In its report Innovation in Agriculture, published on February 24th, the French National Audit Office assessed public policy support for agricultural innovation. The assessment focused on the three segments of the innovation process downstream of research and development: appropriation by farmers, and dissemination and exploitation of Agritech innovations.

"For the period between 2018 and 2023, the Audit Office estimates that around €6.7 billion [7.3 billion USD] has been committed by the French government to support innovation in agriculture, which is more than €1 billion [1.1 billion USD] per year. This support aims to deploy innovative solutions on farms, including those from the French Agritech sector (digital, robotics, genomics). Public policy aims to accelerate the agro-ecological transition, in order to boost the dual economic and environmental performance of French agri-food production systems. Innovation has always been a driving force behind agricultural and rural development. Today, it is seen as a priority if we are to make a success of the 'third agricultural revolution' and steer agriculture towards systems that are more competitive, more resilient to the impacts of climate change, and more respectful of biodiversity and natural resources," according to the Audit Office.

Farmers are innovating, but not enough of the innovations needed for the agro-ecological transition are being deployed
The results of a survey on 1,005 farms into the uptake of innovations by farmers show that the majority of farms (86%) incorporate innovations on a regular basis. But none of these innovations is adopted on a massive scale by all farmers. "Substitution methods for plant protection products are the most widely adopted but do not exceed 50% of respondents. Contrary to popular belief, there is no standard profile for innovative farmers. The only common factor is the amount of advice they have received. For 71% of respondents, the main obstacles to change are financial. The risks inherent in innovation fall very heavily on the farmer, unlike in other economic sectors where they are shared better. The return on investment is long and uncertain. As there are not enough references on the impact of new products or processes, farmers have to rely on their own experience and knowledge, or that of their peers, to assess the risks. Therefore, the more an innovation deviates from standards, the less likely it is to be adopted. The main obstacles to innovation are to be found at the manufacturing level, where economic strategies limit the adoption of alternative models. Farmers are calling for more direct financial aid, but current support is poorly targeted and inconsistent. Farmers have difficulty accessing public policy tools for innovation, such as tax credits or the "young innovative company" status.

Public policy to support the deployment of innovations only partially meets the need for advice and ongoing training
"While new farmers are better trained than the previous generation, the growing proportion of farmers with no farming background means that needs are increasingly heterogeneous. Additionally, farmers receive less continuous training than the rest of the working population. The multitude of information channels available to farmers improves the potential to deploy innovations. However, farmers have difficulty finding reliable sources of information on the most recent progress. The Audit Office's survey highlights the positive role played by farming groups in sharing information. While almost all farmers take part in at least one collective, less than 10% belong to a collective with an agro-ecological label. Survey respondents' satisfaction rates with the advice they receive are high (close to 90%). However, they must be compared with the high rate of non-use. Only 44% of survey respondents had used the advice provided by the chambers of agriculture. Although advice providers play an essential role in deploying innovations, public policy does not encourage farmers enough to make use of them, particularly when it comes to overall strategic advice, which is advice covering all aspects of the farm. Apart from training, the deployment of innovations is the subject of the National Agricultural and Rural Development Program (PNDAR), whose aim is to accelerate this dissemination. However, there is no specific roadmap for organizing and strengthening access to advice or experimental facilities."

Public innovation policy maintains the position of French agritech in international competition
"The French government has allocated substantial funding (€2.4 billion [2.6 billion USD]) to help the French agri-tech sector, with a significant increase over the 2021-2023 period. Thanks to this support, and despite increased international competition, French Agritech has managed to hold its own. The solutions developed are in line with the objectives of the agricultural innovation policy. The Agritech innovation system, now made up of over 100 players of all sizes, is well-identified by public authorities. Leading consortia bring together public and private players, innovative companies, and players from the agricultural sector. The French Agritech sector is holding its own internationally but, despite the efforts made, too few major new companies are emerging. There are still structural obstacles to the economic exploitation of innovations, in particular the persistent divisions between the traditional players and the new players in the agricultural system. Innovative companies also have insufficient access to experimentation. Finally, difficulties in accessing their target markets make companies vulnerable, with delays in processing marketing authorization applications that are still too long.

Photo: Dreamstime
Source: ccomptes.fr

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