French agriculture at a time of choice.

Summary In spite of the significant public aid it receives, French agriculture is showing unsatisfactory results in several respects: declining employment, low income in certain activities, a marked deterioration in the environment, and an eroding commercial performance. The regulatory complexity and the cost of labor are often highlighted by the profession. But the predominance of small structures, particularly in downstream industries, the sluggishness of technical progress, an uneven level of training of farmers, the lack of coordination of the sectors and questionable non-price competitiveness strategies are also factors contributing to explain these counter-performances. In this context, public policies lack a clear direction, as their different tools sometimes pursue contradictory objectives. Agricultural policy must now be clearly refocused on key long-term objectives. Preserving natural capital must become a central axis of agricultural policy: it is both an environmental issue and a condition for the future economic success of agriculture itself. To do this, we must move towards remuneration of amenities rather than undifferentiated aid with uncertain objectives. Regulations, which are currently more restrictive than effective, must be more focused on results. To create the conditions for innovative agriculture, we should not leave promising biological innovation or spatialized data, which are becoming strategic, to a few large international companies, but rather help public research to guide this innovation so that it is more in line with biological regulations. At the same time, continuing education for farmers must be strengthened by mobilizing agricultural high schools, higher education and digital tools. For its export strategy, French agriculture should mainly rely on a small number of labels promoting health control, full traceability, the absence of antibiotics, growth promoters, or respect for the environment or animal welfare. Finally, in the face of market uncertainties, tax lightening over several years, or even the deferral of loans and social charges, should be promoted more than administered prices or counter-cyclical aid to stabilize the economic environment of producers, as should access to hedging tools. At the community level, contractual and non-transferable aids targeting public goods or with social objectives should replace area-based aids. Competitiveness, environment and income are not necessarily incompatible in agriculture. But to reconcile them, a major reorientation of policies will be necessary.