Raising farm labour productivity in the EU: Lessons for the post-2027 CAP
This policy brief discusses how, in the context of post-2027 Common Agricultural Policy (CAP), the EU could support labour productivity growth using CAP instruments.
Why it matters
Competitiveness and productivity are explicit objectives of the post-2027 CAP. Labour productivity is the fastest-growing component of European agricultural productivity and labour accounts for 22.8% of production costs on average. Yet, most of the recent rise came from people leaving farming rather than from higher output, at odds with the Commission’s vision for agriculture and food, which calls for more farmers.
We split labour productivity growth in EU NUTS-3 regions into value added and employment, comparing 2010–2019 with 2020–2024. We then estimated how ten CAP instruments (CATS payments, 2008–2019) were associated with each component one, three and five years later.
This shows which instruments go with higher output rather than fewer workers, which matters because under the proposed 2028–2034 National and Regional Partnership Plans, Member States will choose their own instrument mix.
Key Messages
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Growth in agricultural labour productivity is slowing down across the EU, and it rests on people leaving farming. In the median EU country, national labour productivity growth fell from 2.0% a year in 2010–2019 to 0.8% in 2020–2024 as value added turned from growth to decline. Since 2020, the shrinking workforce has accounted for about 95% of EU labour productivity growth.
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The two instruments most clearly linked to higher value added are decoupled payments and advisory support. Knowledge-sharing and advisory support (AKIS) shows the largest association with productivity, though from a very small budget base. Decoupled payments (DABIS) show a smaller one that fades within five years. Coupled income support (CIS) and early retirement schemes go with slower value added growth at every horizon.
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Payments for natural constraints (ANC) go with more people staying in farming, but not with higher productivity. They should be judged on keeping land farmed, not on productivity indicators.
Methodology supplement
This supplement records what this policy brief adds to Krisztin, Renhart and Piribauer (2026, Agricultural Economics), the statistical methods and the source of every number stated in the brief, including data sources, sample selection, variables, controls and statistical methods used to assess associations between CAP payments and regional agricultural labour productivity. It also documents the robustness checks, code and key limitations, including data coverage and the fact that the results indicate associations rather than causal effects
Accessing data
An interactive Explorer accompanies this brief, where the associations of CAP payments with productivity, value added and employment can be explored in detail.