agricultural productivity — The European Union agricultural sector has experienced a notable surge in labour productivity, registering a 9.2 per cent increase in 2025 compared to the prior year, as reported by Eurostat. This significant rise is attributed to a combination of escalating income levels and a declining workforce, which have collectively enhanced the efficiency of farming across the bloc.
- This surge in productivity marks a significant moment for the EU agricultural landscape, indicating resilience and adaptability in the face of evolving economic conditions.
The remarkable productivity improvement was largely fuelled by an 8.1 per cent increase in the real factor income generated by agricultural holdings. Concurrently, there was a 1.0 per cent decrease in the total volume of agricultural labour, indicating a shift towards more efficient farming practices.
Widespread Gains Across Member States
In 2025, agricultural labour productivity saw an uptick in 19 EU countries, highlighting a broad-based recovery in performance across the majority of member states. The most significant gains were recorded in Luxembourg, where productivity skyrocketed by 40.1 per cent. Poland followed closely with a 33.4 per cent rise, while Estonia reported a 30.9 per cent increase.
Challenges in Some Regions
However, not all countries experienced growth. Eight EU nations reported declines in productivity, with Croatia suffering the steepest drop at 14.9 per cent. Portugal and Greece also faced challenges, with decreases of 10.7 per cent and 8.8 per cent, respectively.
Economic Output and Agricultural Value
Alongside the productivity boost, the gross value added by the EU agricultural industry rose by 10.3 per cent in 2025 compared to the previous year, signalling a strengthened economic output for the sector. The total value of agricultural output also increased by 5.3 per cent, while the costs associated with intermediate consumption grew at a more modest rate of 1.5 per cent.
Long-Term Trends in Agricultural Productivity
Looking at the long-term trends, EU agricultural labour productivity in 2025 was 49.4 per cent higher compared to 2015 levels. During that decade, the index of EU real factor income climbed by 20.8 per cent, while agricultural labour input saw a substantial decline of 19.1 per cent, reflecting ongoing changes in the sector’s structure and operational efficiencies.
This surge in productivity marks a significant moment for the EU agricultural landscape, indicating resilience and adaptability in the face of evolving economic conditions.
