AGP Executive Report

Heat & crop damage: Europe’s record heatwave is already hitting farms hard, with drought and extreme temperatures shrinking yields and raising food-export worries, including reports of smaller potatoes and apples and a forecast drop in France’s corn harvest. EU pesticide fight: German farming groups are pushing back against tighter pesticide rules under “simplification,” aiming to loosen what can stay on the EU market—an issue that directly affects German crop protection and bee health. Potato tourism in Germany: The “Potato Hotel” in Lüneburg Heath turns local potato culture into wellness stays, with potato-based treatments and a farm-rooted guest model. Ammonia & industrial inputs: Covestro, Fertiglobe and MB Energy signed an MoU to explore an ammonia import route into Hamburg, with potential implications for industrial feedstocks and hydrogen supply. Offshore wind financing: Skyborn Renewables reached financial close for the Gennaker project in the Baltic Sea, moving toward construction and power delivery by end-2028. Logistics for ag-linked industry: DP World started a €50m expansion of its chemicals hub in Wolfenbüttel, adding rail capacity and storage that also supports agricultural-sector customers.

Potash Mining Update: Drilling has started to map a new potash mine near Sussex, Canada, setting up a five-year path to production for Atlantic Potash Millstream. EU Trade & Food Security: Canada is reportedly pursuing “associate member” talks with Brussels as tariffs and US pressure push a de-Americanization of key industries. Agri-Food Innovation Deals: ADIO and Bayer have signed a framework MoU covering health and agri-food innovation, including potential desert crop field trials tied to food security. Sustainable Farming Pressure: A new UK report warns fruit and veg supply is vulnerable to climate change and calls for more support so farmers can grow more at home. Circular Economy & Tech Events: Ecomondo 2026 in Rimini expands internationally and adds a textile supply-chain hall, with more focus on AI, bioeconomy and Europe’s ecological transition rules. Coffee Trade: Morocco ranked fourth for Uganda’s coffee exports in July, with Germany among top buyers. Hazelnut Exports: Georgia exported 7,800 tons of hazelnuts worth $79.4m in the first eight months of 2026, with EU buyers leading. Water & Plastic Monitoring: Germany’s Plastic Pirates citizen science project has tracked river litter since 2016, with plastic and cigarette butts topping counts.

Energy transition & renewables: Germany is accelerating its power shift, with projections of renewables reaching close to 80% of electricity generation by 2035, but the big bottleneck is grid build-out—new high-voltage lines must keep pace with offshore wind in the North Sea and Baltic to avoid curtailment. Offshore wind investment: Masdar signed deals tied to Germany’s clean-energy buildout, including an MoU with RWE to explore participation in future offshore wind auctions (over €3bn indicative value) and a partnership with Luxcara on battery storage and wind (potentially over €5bn). Biogas reality check: A new analysis argues biogas expansion is constrained by high, stagnant costs and limited feedstock, urging a strategic rethink toward niche roles like seasonal storage and waste management rather than primary power. Agri-food innovation: ADIO and Bayer signed a MoU to explore cooperation across healthcare, life sciences, food security, philanthropy and innovation ecosystems. Fertiliser & trade signals: Fuel prices in Germany are reported to be surging amid Bab el-Mandeb tensions, with expectations that biodiesel demand could push diesel toward €3/l. Climate-friendly crops: A Colorado piece highlights black-eyed peas as a climate-resilient legume—useful inspiration for drought-adapted crop discussions.

Agri-food innovation ties: Abu Dhabi Investment Office (ADIO) and Bayer signed a strategic MoU to explore cooperation in health, life sciences and food security, including potential field trials on crop performance in arid conditions. Smart growing at scale: LetPot marked its 7th anniversary at IFA Berlin 2026, showcasing connected hydroponic systems and a new multi-level LPH-Home setup aimed at expanding home smart gardening in Europe. Farm-tech and biotech partnerships: The same ADIO–Bayer framework also targets innovation ecosystems and philanthropy around agri-food and health. EU budget politics with farm impact: Germany’s Chancellor Merz pushed back in Berlin against an EU long-term budget proposal, setting up a tougher fight over spending cuts for the 2028–2034 Multiannual Financial Framework. Crop and fertilizer supply signals: Namibia’s fertiliser push and other global fertilizer-linked investment items are in the week’s mix, underlining continued interest in securing inputs for production.

Ukrainian-Russian Diplomacy: Zelenskyy says he’s ready to travel to the G20 in Miami in December and meet Putin there, stressing that only concrete outcomes matter. Food & Tech: German firm Print2Taste and others are pushing 3D-printed food beyond niche use, printing items like chocolate, cheese and pea-protein pastes with multiple material options. Agrifood & Trade Links: UAE and Germany used a Munich business forum to sign 30 deals worth about €9.66bn, explicitly covering agriculture, food security and related sectors. Fertiliser Supply Push: Namibia’s Dâures Green Fertiliser Project secured about US$3.6m to move toward renewable-powered fertiliser production, aiming to cut dependence on imported inputs. Farm Machinery Support: A report on harvest logistics shows how connected machinery and remote diagnostics are speeding up dealer parts and technician response when combines break down. Bio-based Materials for Farming: BIOWEG plans Europe’s largest bacterial cellulose plant in NRW to help replace fossil-based polymers as microplastic restrictions tighten. Animal Welfare (Germany): Atlantis Horse Sanctuary near Newel, run with a Luxembourg partner, offers refuge for elderly horses and other livestock funded via lessons, sponsorships and donations.

Biofuels & Oilseed Supply: Bayer and Neste finalized an agreement to scale Bayer’s newgold® winter canola in the U.S. Southern Great Plains, aiming to boost lower-carbon feedstock for renewable diesel and sustainable aviation fuel while also feeding dairy, beef, poultry and swine markets. Germany-UAE Agri & Food Security Links: During UAE President Mohamed bin Zayed’s Germany visit, the two countries launched a Strategic Dialogue and agreed a €40bn UAE investment package, with business forums in Munich signing 30 deals worth about €9.66bn—covering energy, tech and explicitly agriculture and food security. Climate Risk to Food Systems: A new study warns that weakening Atlantic currents could sharply cut global food production in major breadbaskets, raising commodity prices and food-security pressure. Offshore Wind Momentum: Skyborn reached financial close on the up to 976.5MW Gennaker offshore wind project in Germany’s Baltic Sea, moving the gigawatt-scale plan into construction. Food & Farming Tech: A report on modern food-safety metal detection highlights how automation and data-driven inspection are changing factory operations and brand protection.

Root Crop Trade Fair: PotatoEurope and SugarBeet Expo 2026 drew about 10,100 visitors from 79 countries to Rittergut Gestorf near Hanover, with 300 exhibitors showcasing machinery, varieties and inputs for potatoes and sugar beet, and 96% reporting high satisfaction. Fertiliser & Food Security: A Namibia green fertilizer project (Dâures Green Fertiliser) backed by SDG Namibia One and Enersense Energy Namibia targets up to 80,000 tpy of ammonium sulfate using renewable power and green hydrogen, aiming to cut CO2 and reduce reliance on imported fertiliser. Water & Transport Pressure: Rhine water levels fell again after dry weather, pushing up inland shipping costs and forcing vessels to sail part-loaded—an issue that hits commodity flows and farm supply chains. Urban Farming in Germany: REWE is expanding rooftop lettuce sales in Berlin, with “Fresh from the REWE roof” greens grown just metres above the store, adding to Germany’s growing interest in local, space-efficient production. Bio-based Materials: BIOWEG plans a large bacterial cellulose plant in Elsdorf, NRW, targeting up to 10,000 tonnes/year for biodegradable polymer replacements, with first commercial volumes aimed for 2028. Agri-Climate Tech: A study links deep-learning model design to ecological time scales to improve forecasts of chlorophyll a, a key marker for algal blooms and eutrophication risk.

EU CAP & farm budgets: The Irish Farmers’ Association warned that EU budget talks and the next Common Agricultural Policy could cut CAP funding by 22%, potentially dropping payments to around €130/ha and costing the farm sector up to €400m a year from 2028–2034—urging “no deal is better than a bad deal.” Farmers’ role in history: A Holocaust documentary, UnBroken, premieres in Prague on Sept. 25, highlighting how German farmers Paula and Arthur Schmidt sheltered a Jewish family on their Brandenburg farm—later recognized by Yad Vashem. German politics backdrop: Polling puts AfD at the top nationally (about 27–29%), with CDU/CSU trailing, after a strong Saxony-Anhalt result—raising questions about coalition math and governance. Agribusiness innovation: Syngenta and Amoéba Seal signed an exclusive European distribution deal for a new biofungicide aimed at cereal growers. Markets & input pressure: Fertiliser prices remain about 30% above 2025 levels, while farmers report tightening margins and reduced spending.

AgriTech Funding: Finland’s Nordic Foodtech VC is adding up to €30m (EIF-backed) to its Fund II (target €80m) to back early-stage AgriTech across Northern Europe, with notable allocations including German land-based aquaculture Oceanloop (up to €38.5m) and French biocrop-protection startup Agriodor (€15m). Cereal Biocontrol Deal: Syngenta and Amoéba signed an exclusive EU-wide distribution partnership for a next-gen biocontrol fungicide (AXP20) aimed at wheat diseases like septoria tritici blotch and yellow rust, targeting registrations in Q3 2028 and sales from end-2028. Traceability Upgrade for Cocoa: Merck and Hashgraph Group are piloting a cocoa traceability system that ties physical authentication to digital records (origin, quality, compliance) to strengthen auditability and recall across fragmented supply chains. Energy Transition Impacting Farming: GlobalData forecasts Germany’s power mix will swing sharply toward renewables (near 88% capacity by 2035) as coal phases out and a new capacity market supports reliability—an important backdrop for agricultural energy costs and grid planning. Pollution & Soil Risk: Swiss researchers estimate 219 tonnes of microplastics deposit in Switzerland each year, with about 78 tonnes landing on agricultural land. Climate Pressure: An AFP analysis using Copernicus data reports the hottest June–August on record for 1.3bn people worldwide, with heat and drought impacts already hitting multiple regions.

Farm Machinery & Bedding: Tuchel’s Anner Agri debut at Ploughing highlights new self-propelled cubicle sweepers and bedding dispensers, including the Farmprofi model priced at €22,000 (VAT incl.), aimed at more even, low-dust bedding spread. Farm Economics: McKinsey’s Global Farmer Insights 2026 says farmers worldwide are cutting back spending as input costs, uncertainty and weather risks squeeze margins—fertilizer is the first category many plan to reduce, with a shift toward generics when possible. Investment Mood in Germany: The same survey points to selective investment rather than a full stop, with equipment and crop protection spending more likely to be delayed until profitability improves. Agri-Tech & Planting: Fendt and Massey Ferguson unveiled new planter lines at Farm Progress Show, with Massey Ferguson’s N-Series bringing factory Precision Planting tech and Fendt’s Momentum targeting high productivity from 2027. Ukraine Funding Pressure (EU context): Ukraine says it needs an extra $27bn to cover a defense budget shortfall, putting more strain on European backers’ planning.

Industrial Restructuring: Leuna Polyamid, the insolvent plastics and fertilizer plant in Leuna, says it failed to secure a binding investor offer; production will run only through end-September before a self-managed shutdown, affecting about 400 employees, with price pressure from Chinese suppliers blamed. EU Solar & Grid Flexibility: SolarPower Europe reports EU solar additions of about 33.8GW in H1 2026, with solar hitting a record 25% of electricity in June, but growth is increasingly constrained by curtailment, negative prices, falling capture rates, grid bottlenecks and weak flexibility. Agrivoltaics & Building PV Reliability: A new IEA PVPS report argues BIPV, floating PV and agrivoltaics need application-specific performance and qualification metrics, not one-size-fits-all testing. Cereal Biocontrol Deal: Syngenta and Amoéba announce an exclusive EU distribution and supply partnership for a next-generation biocontrol fungicide targeting wheat diseases like septoria tritici blotch and yellow rust, with registrations expected from Q3 2028. Wildfire Risk for Solar: France’s brush-clearing rules are expanding wildfire prevention expectations for solar sites, with coordination beyond site boundaries becoming more common—relevant for Germany too as the wildfire conversation spreads. Climate Finance for Farming: Kenya’s Agricultural Finance Corporation wins global recognition for embedding climate resilience into agricultural lending, as drought and floods keep raising risk for rain-fed farmers.

Agri-Industry Investment: German group Saria bought 36.5% of Chile’s Fiordo Austral, aiming to scale salmon-byproduct processing into higher-value animal and human nutrition ingredients. Renewables for Farming: RWE is preparing a $300m Silver Maple Solar project in Michigan, but Zeeland Township is suing over a state law that lets renewables bypass local approval—locals cite farmland loss and environmental concerns. Policy Speed for Farmers: Western Cape agriculture minister Ivan Meyer argues governments must move faster to protect farmers from fast-changing risks like geopolitics, climate and market shifts. Trade Pressure on Food Supply Chains: Canada’s retaliatory tariffs on about $20bn of US goods took effect, covering items including agricultural equipment and dairy—raising uncertainty for cross-border farm inputs and machinery. Water & Climate Risk: A report flags worsening water shortages in Germany and Europe amid rising temperatures, a direct threat to farming reliability. Pesticide Health Warning: A new study says nearly half of farmers worldwide are poisoned by pesticides each year, renewing pressure for safer crop protection.

Cocoa Value-Add Push: Germany backed Ghana’s plan to require at least 50% of cocoa beans to be processed domestically, arguing it helps keep more value in-country and points to German-linked players like Fairafric and WAMCO—while urging Ghana to move further into finished chocolate and other high-value products. Insolvency in Renewables: Enerparc AG has filed for preliminary insolvency proceedings, with an administrator appointed under German law; the company runs solar and battery storage projects and employs about 700 people worldwide. Water Stress in Europe: New monitoring work warns that groundwater depletion and rising evaporation are worsening water shortages in Germany and across Europe, with reserves not expected to fully recover even if autumn rainfall is normal. Food Price Pressure in Spain: Shoppers in northern Spain report higher prices for vegetables, fruit, meat and eggs, with farmers citing heat and drought but also energy, transport and supply-demand shifts. Aquaculture Support: GIZ will return as a gold sponsor for World Aquaculture Tanzania 2026, backing projects aimed at sustainable aquatic food systems and blue-economy growth. Trade Tensions Affect Agri-Supply Chains: Canada confirmed retaliatory tariffs on US imports will start at 12.01am Tuesday, hitting sectors including agricultural equipment and related goods.

Fertiliser Costs: Rabobank says fertiliser prices have eased but remain about 30% above 2025 levels, squeezing farm margins as geopolitics, weather risks and higher phosphate prices keep uncertainty high. Farm Risk & Weather: The same outlook flags El Niño as a threat to crops, adding pressure just as purchasing power hasn’t recovered. EU Food & Drink: EU beer production is slipping as alcohol-free volumes rise, a sign of shifting consumer demand that could ripple through supply chains. Animal Welfare in Aquaculture: A new Leibniz IGB manual offers a practical welfare assessment approach for shrimp farming, aiming to improve standards as ethical and animal welfare scrutiny grows. Agrifood Research: Scientists report genes linked to grain yield under harsh growing conditions, pointing to breeding options for tougher climates. Trade & Policy Watch: EU–India agri-food trade is set to expand toward €10bn by 2032, underlining continued momentum for cross-border food supply.

Far-right Shock in Saxony-Anhalt: AfD won 44% in the state election, far ahead of Merz’s CDU at 17.2%, with 77% turnout—close to governing but still short of a majority, leaving coalition talks uncertain. Heat Damage to Wine: France’s wine harvest is forecast to be among the worst in 30 years after severe drought and heatwaves cut yields and shrank vineyard output. Pesticide Health Alarm: A new global study estimates 402–433 million acute pesticide poisoning cases among farmers and farmworkers each year, with Europe the only major region seeing declining pesticide use since 1990. Plant Breeding Coordination: Europe’s Plant ETP says it’s aligning research and seed-sector priorities to better translate plant-breeding innovation into farmer needs. Livestock Supply Shift: Ireland’s “rose beef” veal production is moving into a trial phase involving hundreds of dairy-beef calves, backed by an industry-led nutrition project. Agri-Trade Risk Watch: EU industry warns China-linked supply-chain competition could drive large-scale manufacturing job losses, pushing Brussels toward tougher responses.

Far-right Breakthrough in Saxony-Anhalt: Germany’s AfD surged to about 44.4% in Saxony-Anhalt’s regional election, far ahead of the CDU (around 18%), putting the party on the cusp of potentially running a state government for the first time since WWII—though an absolute majority is still unclear. Drought Hits German Farms: Farmers across Germany are facing mounting losses as drought and extreme heat become more routine, squeezing yields and finances and forcing costly adjustments. Slurry Tech Deal: Vogelsang is partnering with Slovenian machinery maker BeTEC to develop slurry applicators, aiming for more precise slurry application and new product ranges from September 1. Potato Crop Strain in Luxembourg: After a very dry spell, Luxembourg potato growth stalled, with farmers expecting roughly a 30% shortfall for eating and feed varieties—meaning smaller potatoes and tougher chip production. Climate Extremes Across Europe: A record-breaking summer of heat, drought, fires, and floods is being linked to a new normal, with scientists warning these extremes are becoming more likely. Tick Threat to Livestock and People: The Hyalomma tick, now spotted further north due to climate change, carries Crimean-Congo hemorrhagic fever risk, raising new concerns for animal and human health.